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2019 (3) TMI 1293 - AT - Income TaxLevy of penalty u/s. 271(c) - capitalization of interest u/s. 36(1)(iii) - difference in Revenue receipt as per TDS certificate and P & L a/c - HELD THAT:- In respect of capitalization of interest, we observe that assessee has obtained loan from the State Bank of India and Nutan Nagrik Sahakari Bank Ltd. which has been utilized for the purpose of building furniture and equipment of Kaizen Hospital inaugurated on 27-11-2011. The assessee explained during the course of assessment proceedings that portion of interest paid was capitalized as there was no time difference requiring the same as to acquisition and put to use. In this regard, it is observed that the small amount of bank loan of ₹ 9,70,966/- has been used for three components i.e. building furniture and equipment at different stages therefore, the assesssee has claimed such part of expenses as revenue expenditure instead of claiming depreciation on capitalization of such expenses. In the light of the above facts, we do not find it appropriate to consider that there is a case of furnishing inaccurate particular of income. Therefore, we are of the view it is not justified to levy penalty. Revenue receipt received as per TDS certificate which was not credited in the P & L a/c, we observe that the assessee has failed to substantiate with any material that why the impugned receipt was not disclosed in its income. Therefore, we consider that the assessee has furnished inaccurate particulars of income to theis extent and we justify the action of the assessing officer of levying the penalty u/s. 271(1)(c). Accordingly, we direct the assessing officer to restrict the penalty as supra, therefore, the appeal of the assessee is partly allowed.
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