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2018 (8) TMI 1710 - AT - Income TaxLevy of penalty u/s. 271(1)(c) - disallowance u/s 14A - Held that:- When the A.O. has himself said that the assessee had borrowed huge amounts and it has made huge investments in shares and securities which did not yield any income and the interest so incurred is liable to disallowance u/s.14A where the question of disallowance on the premise that the assessee has not conducted “any business” arises. Conspicuously, the A.O. himself has not mentioned that the penalty is being initiated for this aspect of the disallowance. Disallowance u/s. 14A in this regard is itself not sustainable on the touch stone of the Hon'ble jurisdictional High Court decision in the case of Ballarpur Industries Ltd. (2016 (10) TMI 1039 - BOMBAY HIGH COURT). In this view of the matter also in the facts and circumstances of the case, the penalty in this case is not at all leviable. Hence, in our considered opinion, the penalty levied u/s. 271(1)(c) in this case is liable to be deleted. We set aside the orders of the authorities below and delete the levy of penalty. We note that the assessee has also raised that the penalty is not leviable inasmuch as penalty notice did not specify the charge on which the penalty was being levied. We note that various case laws in this regard have also been mentioned in their respective favours by the ld. Counsel of the assessee and the ld. DR also. - Decided in favour of assessee
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