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2024 (1) TMI 1178 - AT - Income TaxPenalty levied u/s. 271 (1)(c) - addition was on account of valuation of stock - HELD THAT:- Since this Tribunal has set aside the issue for fresh consideration. We deem it fit to restore the issue relating to the levy of penalty to the files of the AO with a direction to decide the levy or otherwise of the penalty after deciding the quantum as per the directions of this Tribunal in [2019 (3) TMI 1597 - ITAT DELHI] Disallowance u/s. 14A - As assessee made suo motu disallowance under section 14A, but, assessing officer did not record any satisfaction as to how the disallowance made by the assessee was unreasonable or unsatisfactory. In the absence of any satisfaction recorded u/s 14A of the Income Tax Act, no disallowance could be made against assessee. Further, assessee has own sufficient funds to make investment, therefore, there is a presumption in favour of the assessee that assessee has used own funds to make investment in shares. Therefore, no addition under section 14A of the nature could be made against the assessee -. Since the addition has been deleted the penalty has no legs to stand. To this extent no penalty is leviable. Appeal of the revenue is partly allowed for statistical purpose.
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