2019 (6) TMI 39

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.... Janarthan, Adv. For the Respondent : Smt. Sulekha Verma, CIT(DR) ORDER PER H.S. SIDHU, JM This Stay Application u/s 35A of the Income-tax Appellate Tribunal Rules, 1963 has been preferred by the assessee, seeking stay of balance outstanding of Rs. 125,00,000/- arising out of penalty proceedings u/s. 271(1)(c) of the Income Tax Act, 1961 (in short " Act") on account of disallowance of interest....

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....ge was highlighted. It was further submitted that there is inconsistency in levy of charge by the AO as he has not been specified under which limb he is proposing to levy penalty u/s. 271(1)(c) in the show cause notice; and secondly, on merits also, so far disallowance of interest is concerned, even if it is not allowed u/s. 36(1)(iii), then same needs to be allowed u/s. 57 (iii) as the payment of....

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....he disallowance. 4. We have heard both the parties and perused the records available with us, especially the orders of the authorities below. Keeping in view of the facts and circumstances of the case, we are of the considered view that the assessee has established the prima facie case in its favour and also balance of convenience is in its favour for grant of stay on the balance outstanding dem....