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2018 (6) TMI 1036 - ITAT DELHIPenalty proceedings u/s 271(1)(C) - disallowance u/s 14A r.w.r. 8D(2)(ii) - Held that:- Assessee company has not received any dividend income from these companies which is exempt and therefore there is no application of section 14A - thus when the addition itself is improper, there cannot be any penalty for furnishing inaccurate particulars on such disallowance - Decided in favor of assessee. Disallowance of interest expenditure and letter of credit charges - assessee could not show that borrowings with respect to the assets purchased by the assessee have been capitalized to the cost of assets of till those assets put to use during the year or not - Held that:- On reading of the reasons for making a disallowance it is apparent that there is a difference of opinion between the AO as well as the assessee that the money that been utilized for the purpose of acquisition of the assets have been capitalized till the assets have been put to use - assessee has stated that to that, extent assessee had enough reserves and surpluses available and therefore there is no reason for making any addition to the cost of assets purchased by the assessee - thus it cannot be said that assessee has furnished inaccurate particulars of its income - hence we find no infirmity in the order of the CIT(A) in deleting the penalty levied by AO - Decided in favor of assessee.
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