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2020 (4) TMI 89 - ITAT JAIPURPenalty u/s 271 (1) (c) - CIT-A cancelling the penalty levied for disallowance of depreciation on non-existing assets AND disallowance of prior period expenses - HELD THAT:- Disallowances/ additions made by the AO in respect of depreciation on non-existing assets and prior period expenses were deleted by this Tribunal vide order dated 28-08-2017 in [2017 (9) TMI 649 - ITAT JAIPUR]. Thus the additions itself are not in existence then the penalty levied by the AO would not survive. The ld. DR has submitted that the Department has filed an appeal against the order of this Tribunal before the Hon'ble Jurisdictional High Court, however the findings of this Tribunal on these issues have not been disturbed by the Hon'ble Jurisdictional High Court till date. Therefore, in the facts and circumstances of the case when additions/ disallowances were deleted by this Tribunal then the penalty deleted by the ld. CIT(A) does not require any interference. Levy of penalty u/s 271(1)(c) on account of disallowance of provisions for doubtful debts - HELD THAT:- From the findings of the AO as well as Tribunal in the quantum proceedings, it is clear that it is not a case of furnishing inaccurate particulars of income or concealment of particulars of income but the claim of the assessee is regarding provision for bad and doubtful debts being outstanding dues from the electricity disconnection consumers. Once the assessee has produced and disclosed all the relevant facts then mere disallowance of claim by the AO on the ground that the same is not allowable as per provisions of the Income Tax would not lead to the conclusion that the assessee has furnished the inaccurate particulars of income or concealed the particulars of income. Accordingly, following the judgement in the case of CIT Vs. Reliance Petroproducts (P) Ltd. [2010 (3) TMI 80 - SUPREME COURT] the penalty levied by the AO against disallowance of claim of provision for bad and doubtful debts is deleted. - Decided in favour of assesse.
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