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2020 (4) TMI 463 - AT - Income TaxPenalty u/s 271(1)(c) - additions made on account of disallowance of promotional and advertisement expenses and claim of excess loss on sale of motor car - HELD THAT:- As regards advertisement and promotional expenses, it is noticed, the AO himself has stated that such expenditure was incurred by the assessee in the preceding years. It is further evident, only due to increase in the quantum of expenditure the AO has disallowed the expenditure on the allegation that the assessee has failed to furnish any evidence to support such increase in the expenditure. Disallowance is not due to any false claim made by the assessee but on the basis of doubt entertained with regard to the quantum of expenditure - assessee cannot be accused of furnishing inaccurate particulars of income or concealing income Claim of excess loss on account of sale of motor car, it is the claim of the assessee that such excess loss was claimed inadvertently due to ignorance. AR has submitted, during the assessment proceeding the assessee has furnished a working of short term capital loss on sale of motor car and the Assessing Officer has accepted such loss and allowed carry forward of the same - excess claim of loss was because of the fact that the assessee has debited it to his profit and loss account. The explanation of the assessee that, it is a bonafide and inadvertent mistake is acceptable. Therefore, even in respect of this addition also, there cannot be any allegation of either furnishing inaccurate particulars of income or concealment of income. We hold that the imposition of penalty under Section 271(1)(c) in the present case is uncalled for. - Decided in favour of assessee.
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