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2014 (4) TMI 1178 - AT - Income TaxPenalty levied u/s. 271(1)(c) - interest free advances - CIT(A) restricting the penalty - Held that:- The interest free advances not related to business are amounting to ₹ 1,49,94,194/- and assessee has interest free funds available as capital as well as this year’s profits assessed by AO at ₹ 2,48,69,062/-, which is more than the interest free advances, there is no scope for any disallowance but now that chapter is closed and assessee has not filed any appeal against quantum addition, the penalty u/s. 271(1)(c) of the Act for concealment of income or furnishing of inaccurate particulars of income, in any case, cannot be levied. We delete the penalty confirmed by CIT(A) and levied by AO. This issue of assessee’s appeal is allowed. Disallowance of loss on account of prize winning tickets lost by assessee - Held that:- Assessee before AO has given complete details and this fact is recorded in its ledger. The assessee has even now before us filed complete detail of loss claimed on lost prize winning tickets at ₹ 7,45,645/-. Here, we are in agreement with the findings of CIT(A) because the assessee filed complete particulars of income in its accounts filed along with the return of income and the AO in its penalty order has no where brought out that how this is a concealment. According to AO, in his penalty order, clearly says that this is a clear cut disallowance based on the facts submitted by assessee. Once this is merely a disallowance of loss, which was claimed by assessee on the basis of evidences and the AO is unable to bring out any reason for levy of penalty u/s. 271(1)(c) in his order, the same has rightly been deleted by CIT(A). - Decided in favour of assessee.
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