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2017 (4) TMI 444 - AT - Income TaxPenalty under section 271(1)(c) - whether AO has not specified charges which is to be levied against the assessee? - addition of interest u/s.24(b) - Held that:- In the assessment order while recording satisfaction for initiation of penalty, the ld.AO has recorded a categorical satisfaction that the assessee has furnished inaccurate particulars of income. The letter dated 4.2.2013 has not been placed on record by the ld.counsel for the assessee. This show cause notice has been replied by the assessee and a perusal of the reply would indicate that the assessee was duly confronted with specific charges of furnishing inaccurate particulars. Therefore, on the strength of the judgment referred to by the ld.counsel, the assessee cannot draw any benefit on facts. The charge was specific and from the reply of assessee it is not discernable that there was confusion in his mind while preparing his defense. We have confronted the assessee to explain what has operated in the minds of the assessee when he filed the return. What led the assessee to include the total interest expenditure as allowable expenditure. Neither it has been alleged that on advice of tax consultant, it was claimed as allowable expenditure, nor is the case of the assessee that without verification of the facts, he has signed the return under a bona fide mistake, which was prepared by the clerk in the tax consultant office. Under these circumstances, the ld.counsel for the assessee cannot draw benefit of the proposition laid down in the decision referred before us. Therefore, we are of the view that the ld.Revenue authorities have appreciated the facts in right perspective and we do not see any reason to interfere in the finding of the ld.CIT(A). - Decided against assessee
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