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2015 (10) TMI 1482 - AT - Income TaxPenalty u/s 271(1)(c) - assessee has concealed income by setting off interest against expenditure - CIT(A) delted the penalty - Held that:- Similar to the facts of the case before the Delhi High Court in CIT Vs. Mushashi Autoparts India P.Ltd. (2010 (12) TMI 106 - Delhi High Court) and therefore held that there was no filing of inaccurate particulars of income and there was no concealment of income on the part of the assessee. We also find that the action of the Assessing Officer in not allowing set off of interest subsidy against the expenditure incurred by the assessee before commencement of business is only a mere change of opinion and there is no concealment of income or furnishing of inaccurate particulars by the assessee. In the case of CIT Vs. Bokaro Steel Ltd. (1998 (12) TMI 4 - SUPREME Court) the Hon'ble Supreme Court referring to the decision of Chellapalli Sugars Ltd. Vs. CIT (1974 (10) TMI 3 - SUPREME Court) held that if the assessee receives any amounts which are inextricably linked with the process of setting up of its plant and machinery such receipts will go to reduce the cost of its assets and these receipts are of the capital nature and cannot be taxed as income. In the circumstances, we uphold the order of the Commissioner of Income Tax (Appeals) in deleting the penalty. - Decided in favour of assessee.
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