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2017 (1) TMI 1241 - AT - Income TaxPenalty u/s.271(1)(c) - unaccounted stock addition along with GP computed there upon - Held that:- It is evident that the lower authorities have simply gone by stock statement difference in assessee’s books as compared to that declare to the above stated co-operative bank totaling to ₹ 41,39,130/- in the first round and the same has been split over in the two impugned assessment years in the latter consequential round subject matter of appeal before us. They don’t even refer to a single piece of evidence apart from assessee’s stock statement disclosed to the bank which could indicate there has been any excess stock item in its relevant books or other evidence. It is thus apparent that the impugned addition is based upon assessee’s stock statement given to the bank as prepared on estimation basis only instead of actual figures. - Decided in favour of assessee Disallowance is of interest expenses - Held that:- We reiterate that the impugned quantum disallowance has been made only on the ground that the assessee had utilized interest bearing fund for non business purposes u/s.36(1)(iii) of the Act. This is not the Revenue’s case that it had not disclosed all the relevant particulars resulting in the impugned disallowance. It is thus evident that the assessee sought to contest Assessing Officer’s show cause alleging diversion of interest bearing funds which ultimately went in Revenue’s favour. We accordingly conclude that the same cannot be held to be a case of furnishing of inaccurate particulars or concealment of income as rightly held in the lower appellate proceedings. - Decided in favour of assessee
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