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2019 (1) TMI 533 - AT - Income TaxPenalty u/s 271(1)(c) - income from other sources - assessee earned interest income from certain loans & savings bank account - Held that:- onus to prove the nexus between income earned and expenditure made there-against, in terms of Section 57, squarely lied on the assessee, which has not been conclusively established. The assessee has paid interest to loans obtained from banks / financial institutions. It is categorical finding of the lower authorities that the loans have been obtained against shares and the same have been invested in Shares & Bonds and this fact could not be rebutted by any cogent material on record. Similarly, the nexus between loan obtained from LIC and loans which earned interest income could not be demonstrated. This being the case, we have no hesitation in confirming the stand of lower authorities. The cross-objection of assessee stands dismissed. For penalty we find that the assessee made a claim which has not been accepted by lower authorities for want of conclusive evidence of proving the nexus between funds borrowed by the assessee and funds advanced by the assessee. However, the same, in our opinion, did not lead to concealment of income or furnishing of inaccurate particulars of income so as to warrant imposition of penalty u/s 271(1)(c). Therefore, by deleting the same, we allow the assessee’s appeal.
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