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2014 (4) TMI 476 - ITAT DELHIPenalty u/s 271(1)(c) of the Act – Disallowance u/s 40(a)(ia) of the Act – Held that:- The assessee furnished return declaring a loss of Rs. 7,96,49,700 - The AO determined the loss at Rs. 54,51,48,532 - though the certain disallowances were made u/s 40(a) and 40(a)(i), the set off given by the AO on account of disallowances made in the preceding year was much more than the disallowances made in the year under consideration - major disallowances have been made because of the assessee’s failure to deduct and pay the tax in time - though the deduction claimed has been disallowed in one year, the same has been allowed in the subsequent year - The head office expenses have been disallowed on the ground that the assessee could not give satisfactory explanation to substantiate the claim of expenditure – Relying upon COMMISSIONER OF INCOME-TAX Versus RELIANCE PETROPRODUCTS PVT. LTD. [2010 (3) TMI 80 - SUPREME COURT] - merely because certain claim of expenses is disallowed cannot be sufficient for levying the penalty u/s 271(1)(c) – Decided against Revenue.
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