Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (11) TMI 90 - AT - Income TaxPenalty u/s 271(1)(c) Penalty levied on interest disallowance Held that:- The assessee has furnished all the details relating to the interest claim - the assessee has mainly used the borrowed funds for making investments in proprietary concerns, partnership concerns and the private limited companies, wherein he is substantially interested - the AO has worked out the disallowance by considering the investments made in one of the concerns only CIT(A) rightly was of the view that the additions made during assessment proceedings would not automatically give rise to penalty proceedings - CIT(A) was justified in deleting the penalty levied on the interest disallowance Decided against revenue. Penalty on cash credits u/s 68 Held that:- The penalty u/s 271(1)(c) is not levy-able merely on the reasoning that the assessee has agreed for assessment of the loan amount as his income - The assessee has furnished reasons as to why he accepted for the assessment of the loan amount as his income - Though the assessment has been made on the basis of statement given by the lender, yet it cannot be taken as a strong ground for levying penalty - Relying upon SHREE NIRMAL COMMERCIAL LTD. Versus COMMISSIONER OF INCOME-TAX [2008 (8) TMI 158 - BOMBAY HIGH COURT] thus, the order of the CIT(A) is set aside and the AO is directed to delete penalty levied on the loan amount Decided in favour of assessee.
|