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2013 (5) TMI 373 - ITAT MUMBAIPenalty u/s 271(1)(c) - disallowance of deduction u/s 80-IA as assessee was only a contractor executing the work and was not owner of the facility and hence neither designing nor conceiving it - CIT(A) deleted the penalty - Held that:- It is an undisputed fact that the assessee company is under a bona fide belief that it is eligible for deduction u/s 80-IA and the same is evident from the conduct of the assessee, who has not filed appeal before the CIT(A) against quantum additions. From the above write up given by the assessee, it is evident that the assessee would have won the appeal on quantum additions if were to file. Therefore, the attaining finality on the quantum additions against the assessee is no issue for confirming the penalties. As such there exists dispute on the debatable nature of the said provisions. As per the judgment of CIT vs. Reliance Petroproducts Pvt. Ltd. (2010 (3) TMI 80 - SUPREME COURT), it is a settled law that no penalty should be levied when the issue is a debatable one and when the claim is wrongly made in the return of income. Considering the settled nature of the issue, CIT (A) has rightly deleted the penalty made by the AO u/s 271(1)(c) and it does not call for any interference. Against Revenue.
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