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TMI Blog2012 (10) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of provision for loan pool account and bad debts, therefore, there is no reason to hold that the assessee furnished inaccurate particulars of income. Therefore, penalty is not leviable in the matter - direction to cancel the penalty - in favour of assessee. - ITA No. 86/Agra/2011 - - - Dated:- 28-9-2012 - SHRI BHAVNESH SAINI, AND SHRI A.L. GEHLOT, JJ. Appellant by : Shri M.M. Agarwal, C.A. Respondent by : Shri Waseem Arshad, Sr. D.R. ORDER Per Bhavnesh Saini, J.M. : This appeal by the assessee is directed against the order of ld. CIT(A)-I, Agra dated 15.12.2010 for the assessment year 2006-07, confirming the levy of penalty u/s. 271(1)(c) of the IT Act on account of additions made for provision of loan pool accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) in para 5.10 of the impugned order deleted the penalty on the disallowance of Rs.10,56,561/-, Rs.69,268/- and on disallowance of Rs.10,35,458/- and allowed the appeal of the assessee to that extent. As regards the disallowance of Rs.3,16,673/- on which penalty was levied, the ld. CIT(A) confirmed the levy of penalty. His findings in appellate order in this regard are mentioned in para 5.11, which is reproduced as under : 5.11. The last disallowance made in the assessment order for which penalty has been levied is 3,16,673/-, which was made on account of provisions of loan pool account and bad doubtful debts. Such provisions are in the nature of expenses which has not crystallized and being just provision they cannot be claimed as ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ack during the preceding assessment year 2005-06. There is no provision during the year under consideration and no deductions have been claimed of the amount in the profit and loss account. Therefore, penalty is highly unjustified. He has referred to para 3 of the assessment order in question (PB-1) and also referred to PB- 19, which is assessment order for the assessment year 2005-06 in which the AO made similar addition of Rs.3,16,673/-. He has referred to PB-22, which is profit and loss account to say that no such deduction of the similar amount in the year under appeal has been claimed and the details of same have been mentioned at PB-28 to show that both the amounts in question were coming up from the earlier assessment year and it was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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