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2022 (1) TMI 624 - AT - Income TaxExemption u/s 11 - Addition made for non utilization of funds - addition for penal interest on FDR loan treating it as mis-utilization of funds and hence not allowable as utilization u/s 11 - HELD THAT:- Assessee should not suffer on account of the mistake of a counsel/accountant/auditor etc. stands well addressed legally. The assessee has relied upon the proposition of law as laid down in the case of CIT Vs Siddhartha Enterprises [2009 (7) TMI 22 - PUNJAB AND HARYANA HIGH COURT]; CIT Vs S. Dhanbal [2008 (8) TMI 15 - DELHI HIGH COURT] and the oft quoted decision in the case of Price Waterhouse Coopers Pvt. Ltd.[2012 (9) TMI 775 - SUPREME COURT] Before considering the position of law, it is necessary to first address the facts since there is no finding on the nature of this penal interest. Accordingly, we set aside this issue back to the file of the AO with a direction to give a specific finding on the nature of interest disallowed. In case it is a case of mis-utilization of funds, then of course the rigors of law will apply. However, if it is an issue of interest on over draft or loan facility for the purposes of the Board, then disallowance cannot be maintained. - Decided in favour of assessee.
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