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2015 (12) TMI 611 - AT - Income TaxPenalty u/s u/s 271(1)(c) - whether mere disallowance of any expenditure can not be treated as a case of concealment? - Held that:- The assessee had claimed the expenditure on interest incurred by the assessee to certain parties which was disallowed by the AO. We find that the claim of the assessee, in respect to loan from unsecured creditors, is not disputed and that disbursement of interest free loan have not been concealed by the assessee before the AO. Here we find that the claim made by the assessee is not a false claim. At best, it can be termed as a wrong claim, though the genuineness of the expenditure has not been suspected by the AO. So when the expenditure made by the assessee which was claimed as an allowable expenditure when disallowed by the AO cannot be termed as concealment or providing inaccurate particulars. Even if assessee firm engages assistance of tax consultants and then for the mistake of tax consultants, the assessee cannot be penalized. In the light of the above facts, we find that the instant case does not merit penalty to be levied against it. Therefore, we are inclined to delete the penalty levied against the assessee. - Decided in favour of assessee.
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