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2020 (3) TMI 1225 - AT - Income TaxDisallowance of professional fees paid by the assessee as well as interest expenditure incurred - assessee not carrying on any business - HELD THAT:- The only solitary transaction is demerger of business of the assessee against which the shares have been allotted in the demerged entity. There is neither frequency nor volumes. Therefore, it does not also apply. Thus, we do not find any reason upset the finding of the lower authorities. Hence, we are also of the view that assessee is not carrying on any business during the year and therefore the learned assessing officer as well as the learned CIT – A has rightly disallowed professional fees paid by the assessee as well as interest expenditure incurred. In the result, ground number 1, 2 and 3 of the appeal are dismissed. Revenue earned because of renting of space of ATM - Business income - HELD THAT:- Lower authorities have concurrently held that appellant is in receipt of rental income from Punjab National Bank for provision of ATM. Except for agreement with the Punjab National Bank, no other details were furnished before the lower authorities as to how the above business can be assessed as a business income. Therefore, we conquer with the findings of the lower authorities and dismiss ground number four of the appeal. Interest income from fixed deposit receipts as income from other sources - HELD THAT:- No infirmity in the order of the lower authorities as assessee has merely placed fixed deposits with the banks and it has not been shown that how the earning of the bank‟s deposit receipt interest can be said to be interest income chargeable to tax under the head business income. Thus, ground number five of the appeal is also dismissed. Penalty u/s 271(1)(c) - HELD THAT:- Claim of the assessee though ultimately not accepted by the concurrent authorities but it cannot be denied that issue raised is not debatable. Further, when the issue itself is debatable, it cannot result into penalty. Based on our discussion also in the quantum appellate proceedings before us covered in this order, it cannot be denied that claim of the assessee is not debatable. Assessee has furnished all the particulars related to its claim. None of the evidences filed by the assessee was incorrect. It may be an altogether different thing that in spite of those evidences, the issue is decided against the assessee. However, merely because the issue is decided against the assessee confirming the disallowance it cannot result into levy of penalty for furnishing of inaccurate particulars - on the merits, the orders of the lower authorities with respect to the penalty levied on the assessee under section 271 (1) (C) of the act cannot be sustained.
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