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2012 (12) TMI 206 - ITAT AHMEDABADDisallowance of Demat charges – section 14A - Held that:- CIT(A) is on this basis that proportionate interest on investment of Rs.1793.51 lacs should be on the basis of average rate of interest paid by the assessee - The average rate of interest has been worked out by Ld. CIT(A) @ 6.57% and disallowance at this rate was confirmed by him and this has been worked out at Rs.1,17,91,794/- is against the amount of disallowance made by the A.O. - This aspect of the order of Ld. CIT(A) is reversed and the A.O. is directed to compute the interest to be disallowed u/s 14A @ 6.57% Penalty u/s 271(1)(c) - Disallowance under section 14A of the Act - 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, in our opinion, attract the penalty under section 271(21)(c) - no penalty is justified in respect of disallowance made by the A.O. u/s 14A of the Income tax Act, 1961 - penalty appeal of the revenue is dismissed.
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