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2019 (9) TMI 492 - AT - Income TaxLevy of penalty u/s. 271(1)(c) r.w. s 274 - disallowance of interest expenditure - HELD THAT:-Assessee has filed complete particulars of income before the AO in the return of income and its audited accounts. The assessee has already placed a reliance on the decision in the case of CIT Vs. Reliance Petro-products Ltd [2010 (3) TMI 80 - SUPREME COURT] wherein it was held that merely because a claim was not accepted by the Assessing Officer, that cannot itself lead to the levy of penalty. Assessee has filed complete particulars of income in respect of claim of expenditure and it is not the case of non-disclosure. The assessee filed explanation before the AO as well as before the CIT(A). During penalty proceedings the assessee had made investments during the year in shares of Trent Ltd. which is engaged in the business of advertising and the investee company is engaged in the retail sector with a view to building long term business prospects for the group company, Trent Limited. Even the investments in shares were made out of mixed funds as well as borrowed funds. Hence in our view the explanation seems to be bonafide and assessee is not exigible to levy of penalty u/s. 271(1) (c) - Appeal of the assessee is allowed.
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