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2019 (8) TMI 544 - AT - Income TaxPenalty u/s 271(1)(c) - additions on account of deduction u/s 80IB(7) and netting off of interest and disallowance of expenses of Jaipur Project - HELD THAT:- It is seen that the assessee’s claim has been that interest income on short term surplus funds which was kept for running hotel business, rent receipt etc. had direct nexus with hotel business and these are income derived from hotel business. Similarly the expenses related to Jaipur project were also claimed on the ground that it is not a separate business but a part of the assessee’s own business. The other project was form of expansion of same business already carried on. Thus, the same were claimed as revenue expenses. Similarly on netting of interest assessee has given a bonafide explanation as how the interest income and interest expenditure had a direct nexus. By making such a claim it cannot be held that assessee has furnished any inaccurate particulars of income or concealed any particulars of income. Simply because disallowances have been made without any adverse material on record but on some legal interpretation, then no penalty can be levied in view of the decision of Hon’ble Apex Court in the case of Reliance Petro Products Pvt. Ltd. [2010 (3) TMI 80 - SUPREME COURT] The findings and reasons of the Ld. CIT (A) for deleting the penalty is thus upheld - Decided in favour of assessee.
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