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2019 (7) TMI 181 - AT - Income TaxLevy of penalty u/s 271(1)(c) - disallowance u/s 40(a) (ia) - whether no specific charges as relates to concealment of income or furnishing of inaccurate particulars of income? - HELD THAT:- There was no concealment on the part of the assessee. This was a simple case of disallowance u/s 40(a) (ia) as the assessee was under the belief that TDS is not liable to be deducted on payment of NBFCs. Thus, the authorities cited by the AR are applicable in the present case. In respect of interest expenses, the same was not concealed by the assessee before the AO. Thus, there is no concealment. Section 271(1)(c) was not correctly invoked by the AO. CIT(A) also overlooked the actual intention of the penalty proceedings which clearly set out that when there is inaccurate particulars or concealment on part of the assessee, then the same should be proceeded. But in the present case, the assessee has disclosed all the factual aspects before the AO which cannot be stated that there was concealment of particulars of income or the assessee furnished inaccurate particulars of income. Assessee has also filed all the details during the regular assessment proceedings. It can be seen that the AO was not sure under which provisions of Section 271 the assessee is liable for penalty - merely because the assessee company did not challenge the addition before the CIT(A), is no ground to levy penalty against the assessee company. See M/S. NETAMBIT VALUE FIRST SERVICES PVT. LTD. VERSUS THE DCIT, CIRCLE-13 (1) , NEW DELHI [2018 (3) TMI 36 - ITAT DELHI] - Decided in favour of assessee.
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