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2019 (4) TMI 1581 - MADRAS HIGH COURTPenalty u/s 271(1)(c) - disallowance u/s 14A - interest and finance charges incurred on availing the loan which was diverted to other companies - HELD THAT:- No substantial question of law arises and the finding of fact recorded by the Tribunal with regard to deposits made by the Assessee Company with another Company viz., M/s.DSQ Holdings Limited was held to be a genuine Inter-Corporate deposits made, as the Assessee Company owed a sum to the said Company and therefore, the Assessee Company did not charge any interest on the sums advanced by it to the said Company for purchase of Shares. No exempted income in the form of Dividend was earned by the Assessee Company during the year in question. The findings of facts recorded by the Tribunal as well as the first Appellate Authority are correct findings of facts and do not give rise to any perversity in the matter. The said findings of facts are, therefore, binding on High Court under Section 260A. The penalty under Section 271(1)(c) was imposed as a consequential of the said addition by the Assessing Authority which has been rightly set aside by both the Appellate Authorities. - Decided against revenue.
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