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2012 (11) TMI 398 - ITAT, AHMEDABADPenalty u/s 271(1)(c) - disallowance on interest - Held that:- The penalty could not have been imposed merely on the basis that the addition made by the AO has been confirmed by the CIT(A) - It is the assessee who has to decide about the business need and expediency in the particular circumstances, and it has to demonstrate that the interest bearing fund was utilized for business purpose and commercial expediency. Whether there was a business expediency or not is a debatable issue & it has been well settled now that penalty cannot be imposed where the issue is debatable - in favour of assessee.
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