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2017 (9) TMI 732 - AT - Income TaxPenalty u/s 271(1)(c) - reopening of assessment - disallowance of interest on loans - Held that:- It is a fact that in the reasons for reopening of the assessment, A.O. has mentioned a very small amount of interest of ₹ 61,063. Therefore, even the A.O. was not aware of the exact amount to the extent of which income has escaped assessment. The A.O. merely on vague and inaccurate figure reopened the assessment. Therefore, nothing could be detected against the assessee specifically at the stage of reopening of the assessment. The assessee when received notice under section 148, declared additional income of ₹ 31,88,093 on account of disallowance of interest on loans. Therefore, the assessee made full disclosure without there being anything detected against the assessee and as such, it may be a bonafide mistake of the assessee in not declaring the total disallowance of interest in the original return of income. Therefore, on such facts, penalty cannot be leviable against the assessee. Merely because assessee had claimed expenditure, which it was not acceptable to the Revenue, that by itself would not attract levy of penalty under section 271(1)(c) of the I.T. Act - Decided in favour of assessee.
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