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2019 (6) TMI 1286 - AT - Income TaxPenalty u/s 271(1)(c) - furnishing inaccurate particulars of income - disallowance of interest expenses u/s 43B - HELD THAT:- The assessee during the assessment proceedings admitted the fact that it not eligible for deduction on account of such interest expense by virtue of the provision of section 43B of the Act. On perusal of the financial statements of the assessee, we note that there was a disclosure regarding the default committed by the assessee for non-payment of interest to the bank. CA also filed a letter issued admitting the mistake committed by him for not making the disallowance in its tax audit report on account of non-payment of interest to the bank We are of the opinion that the assessee has made sufficient disclosures in the financial statements and furthermore it should not be penalized on account of the mistake committed by the chartered accountants as discussed above. Therefore we are reluctant to confirm the penalty levied by the authorities below. There was no deliberate intention/ act on the part of the assessee to furnish the inaccurate particulars of income. We also find strength from the fact that there was no immediate tax benefit to the assessee by not disallowing the interest expenses in the given facts and circumstances since there was loss in the return of income filed by the assessee. Thus we reverse the order of the authorities below and direct the AO to delete the penalty imposed - Decided in favour of assessee.
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