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2014 (7) TMI 5 - ITAT MUMBAIPenalty u/s 271(1)(c) of the Act – Addition of interest – Held that:- Although the disallowance made by the AO on account of interest expenditure is accepted by the assessee apparently for the reason that there was a huge loss resulting into no tax liability even after the disallowance, all the facts relevant to the issue as borne out from the record are not very clear – the claim of the assessee was brushed aside by the AO simply on the ground that every assessment year is separate without looking into as to how and on what ground the claim of the assessee for interest paid on the same loan amount was allowed in the earlier years even on scrutiny in the assessments completed u/s 143(3) of the Act - This aspect was relevant to find out the bonafide of the assessee to claim deduction for interest expenditure claimed in the year especially in the context of imposition of penalty u/s 271(1)(c) of the Act - new contention raised also requires verification for deciding the issue relating to imposition of penalty u/s 271(1)(c) of the Act – thus, it would be fair and proper to remit back the matter to the AO for fresh verification of all the relevant facts and giving a clear finding – Decided in favour of Assessee.
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