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2015 (1) TMI 1374 - AT - Income TaxPenalty order passed u/s 271(1)(c) - Addition of interest income - non recognizing the interest on the loans granted by respective erstwhile amalgamating companies - Held that:- During the year under consideration there was an amalgamation of various entities with the assessee. The assessee has explained the reasons for not recognizing the interest on the loans granted by respective erstwhile amalgamating companies in Note No.14 of notes of accounts. Similarly, the assessee has also given reasons for not making the provision for the interest on the loans taken by the erstwhile amalgamating companies in Note-13 of notes of account. AO has made the addition in respect of interest income by reproducing a wrong note No.13 instead of relevant note being note No.14. When the assessee has adopted a uniform policy and approach in respect of interest expenditure as well as interest income, then the claim of the assessee in not recognizing the interest income would not amount to concealment of particulars of income or furnishing of inaccurate particulars of income. The assessee has furnished the relevant explanation as well as details and the addition was made by the AO on the basis of explanation of the assessee in the notes of accounts therefore, not accepting the claim as well as the explanation of the assessee would not ipso facto lead to the conclusion that the assessee has concealed the particulars of income or furnished inaccurate particulars of income attracting the penalty provisions of section 271(1)(c). - Decided in favour of assessee.
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