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2021 (9) TMI 392 - AT - Income TaxAddition u/s 271(1)(c) - addition of RoC charges and interest expenditure - AO disallowed the same with the observation that the assessee has not explained and not brought on record any material to his satisfaction - HELD THAT:- On appeal before the Ld. CIT(A), the Ld. CIT(A) sustained the additions made by the Assessing Officer and the assessee did not prefer any further appeal. Subsequently, the Assessing Officer initiated the proceedings u/s 271(1)(c) of the Act and levied the penalty. As the expenditure claimed by the assessee are debatable and merely because these expenditures were disallowed and as well as assessee preferred not to appeal before second appellate authority. As relying on RELIANCE PETROPRODUCTS PVT. LTD. [2010 (3) TMI 80 - SUPREME COURT] merely because the assessee had claimed the expenditure, which claim was not accepted or was not acceptable to the revenue, that, by itself, would not attract the penalty under section 271(1)(c). If the contention of the revenue was accepted, then in case of every return where the claim made was not accepted by the Assessing Officer for any reason, the assessee would invite penalty under section 271(1)(c). - Decided in favour of assessee.
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