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2014 (4) TMI 432 - AT - Income TaxPenalty u/s 271(1)(c) of the Act –Interest income on borrowed funds – Inaccurate particulars filed - Held that:- The assessee had filed the confirmation at the time of loan taken from the outsider parties and interest paid to them - thus, the claim of interest was genuine and was for business purposes - The AO had not brought on record any evidence that assessee had concealed income and furnished inaccurate particulars of income - the assessee used the loans for business purposes and interest had been paid on it after making TDS - The genuineness of the loan has not been doubted by the AO - explanation furnished by the assessee is not false as per Explanation 1 of Section 271(1)(c) – thus, the order of the CIT(A) set aside – Decided in favour of Assessee.
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