TMI Blog2014 (4) TMI 886X X X X Extracts X X X X X X X X Extracts X X X X ..... which was filed by the assessee along with its return of income - the expenses were disallowed by the AO and were allowed by CIT(A) which were further disallowed by the ITAT which itself shows that there was two possible views on the additions and various decisions as relied upon by the Ld AR has held under these circumstances the penalty u/s 271(1)(c) cannot be imposed - mere non acceptance of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case on merits. In view of the above, the appeal was heard on merits. 2. At the outset, the Ld AR submitted that penalty was imposed due to additions made by the Assessing Officer on account of three additions namely (I) disallowance of depreciation on leased assets, (ii) disallowance of business expenditure and (iii) disallowance of interest on mortgage loans. The Ld AR submitted that the is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deleted holding that the additions were only on account of difference of opinion and further with the proposition that disallowance of a claim cannot tantamount to disclosure of inaccurate particulars. 1. UTI Bank Ltd. v. ACIT in I.T.A.Nos.2572/2006, 4386 4388/2007 790/Ahd/2012. 2. Devsons Pvt. Ltd. v. CIT (2011) 196 Taxman 21 (Delhi HC). 3. CIT v. University Printers (199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer and were allowed by Ld CIT(A) which were further disallowed by the ITAT which itself shows that there was two possible views on the additions and various decisions as relied upon by the Ld AR has held under these circumstances the penalty u/s 271(1)(c) cannot be imposed. We also find that mere non acceptance of a claim for expenditure cannot tantamount to furnishing of inaccurate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim based on possible legal view, penalty for concealment of income should not be levied merely because the claim had been disallowed in the assessment. Bona fide belief that freight is not includable in total turnover Penalty cannot be levied. 7. In view of the above judicial pronouncements we find that the case of the assessee is squarely covered in its favour. Therefore, the appeal file ..... X X X X Extracts X X X X X X X X Extracts X X X X
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