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2020 (10) TMI 1045 - ITAT DELHIPenalty u/s 271(a)(c) - Disallowance towards cost of raising of loan treated as Deferred Revenue expenditure - Disallowance of provision of Non-performing assets - HELD THAT:- On perusal of the impugned orders and the decision of the Tribunal in assessee’s own case in the quantum proceedings, we find that in so far as the disallowance of expenditure in respect of raising loan is concerned, the Tribunal has deleted the said addition - penalty on such disallowance is directed to be deleted. Disallowance of provision of Non-performing assets - It is clear that the assessee made claim of provision for NPA on 31.1.2001 in the return of income filed for 2001-02 and at that point of time, the issue was debatable and the assessee placing reliance on the decision of the ITAT Chennai in the case of Overseas Sanmar Financial Ltd [2001 (2) TMI 303 - ITAT MADRAS-C] made the said claim in the return of income - We may point out that subsequently, after filing return the Hon'ble Madras High Court rendered decision on 23.1.2002 against the assessee in the case of Southern Technologies [2002 (1) TMI 61 - MADRAS HIGH COURT] but the assessee of that case filed SLP before the Hon'ble Supreme Court [2010 (1) TMI 5 - SUPREME COURT]. Thus, the issue could not attain finality at that point of time while the assessee filed first appeal making same claim before the Tribunal for A.Y 2002-03 and the issue was also debatable. - Decided in favour of assessee.
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