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2017 (11) TMI 1415 - ITAT MUMBAIPenalty imposed u/s 271(1)(c) - deduction on account of write–off of adnavce given towrds purchase of property - Held that:- As could be seen from the facts on record, out of the advance given of ₹ 30 lakh towards purchase of factory building, the assessee could recover the amount of ₹ 5 lakh only and the balance amount of ₹ 25 lakh could not be recovered in spite of best efforts. Therefore, in the return of income filed for the impugned assessment year, the assessee claimed deduction on account of write–off of the amount of ₹ 25 lakh. From the Profit & Loss account and its schedule, it is apparent that the assessee had furnished full particulars of the claim of write–off. Even, in the computation of income filed along with the return of income the assessee has appended a note, wherein he has disclosed full particulars about the facts relating to write–off of ₹ 25 lakh. The assessment order itself reveals that relying upon the note appended to the computation of income as well as Profit & Loss account the Assessing Officer has made disallowance of the write–off. The aforesaid facts clearly demonstrate that the assessee has furnished full particulars of write–off of 25 lakh. Therefore, it cannot be alleged that the assessee has furnished inaccurate particulars of income for which the Assessing Officer had ultimately imposed penalty under section 271(1)(c). Rather, it is a bonafide claim of deduction made by the assessee considering the fact that it was unable to recover the amount of ₹ 25 lakh - Decided in favour of assessee.
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