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2017 (1) TMI 387 - AT - Income TaxPenalty proceedings u/s 271(1)(c) - disallowance of interest as not eligible for deduction u/s 43B(e) - Held that:- There is no dispute to the fact that the amount of ₹ 44,19,194/- was paid towards interest towards preceding Asst. Years 2004-05 and 2005-06 at ₹ 21,10,019/- and ₹ 23,09,175/- respectively and this amount which was capitalized in the preceding years was transferred to construction account and proportionate amount was transferred to profit and loss account on the basis of area sold. We will not like to go into the issue of actual interest expenditure claimed by the assessee as it was ₹ 8,63,435/- as submitted by assessee or ₹ 44,19,194/- as alleged by ld. Assessing Officer which was the figure taken by him from perusal of the construction account in which interest amount of ₹ 44,19,194/- was transferred and was not fully claimed in the year. We just confine to adjudicate as to “whether in these circumstances assessee should have been visited with penalty u/s 271(1)(c) of the Act.” In the given circumstances there has been a claim made by the assessee treating it to be a bona fide claim but not accepted by the Revenue authorities. We observe that Hon. Supreme Court in the case of CIT vs. Reliance Petro Product Pvt. Ltd. (2010 (3) TMI 80 - SUPREME COURT ) has held that if the assessee had furnished all the details of its expenditure as well as income in the return, which were not found to be inaccurate particulars or concealment of income, it was upto to the authorities to accept its claim in the return or not. Merely because assessee had claimed expenditure which was not accepted or not acceptable to Revenue that by itself would not attract a penalty u/s 271(1)(c) of the Act. Also see Price Waterhouse Coopers (P) Ltd. vs. CIT [ 2012 (9) TMI 775 - SUPREME COURT ] - Decided in favour of assessee
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