2018 (9) TMI 876

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.... SANJIV KHANNA, J. (ORAL): Impugned order dated 6th October, 2017 passed by the Income Tax Appellate Tribunal (Tribunal, for short) dismisses the appeal preferred by the Revenue against the order passed by the Commissioner of Income Tax (Appeals) deleting penalty imposed by the Assessing Officer under Section 271(1)(c) of the Income Tax Act, 1961 (Act, for short).   2. Penalty under ....

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....sfaction of onus under Explanation 1 to Section 271 (1)(c) of the Act. 4. It is an accepted and admitted position that the respondent-assessee, a 100% export oriented unit, was engaged in business of accounting data processing for its various customers, including American Express World Wide. The respondent-assessee did not have any other business income and was claiming deduction under Section ....

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....bsence of any income other than exempt income under Section 10B of the Act, interest earned on the income tax refund was directly linked and connected with the business income of the respondent-assessee. 6. The respondent-assessee in the quantum/assessment proceedings had succeeded before the Commissioner of Income Tax (Appeals), which decision was reversed by the Tribunal holding that the inte....

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....ent-assessee had discharged the onus to establish its bona fide while making claim for deduction/exemption under Section 10B of the Act by netting of interest received from Income Tax Department, from interest paid to the bank to make payment of tax to the Income Tax Department. Clearly, there was a connect and link between the interest paid to the bank, which was business expenditure, and interes....