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2013 (6) TMI 464 - ITAT DELHIPenalty u/s. 271(1)(c) - disallowance u/s. 14A - Held that:- Addition on account of disallowance u/s. 14A amounting to Rs. 8,21,690/-. However, the penalty was imposed on the total disallowance amounting to Rs. 10,38,677/-. Thus, the penalty levied was arrived at Rs. 3,53,047/-. However, if the penalty is levied correctly on the actual disallowance by the AO the penalty will fall under a sum of Rs. 3 lacs being the limit fixed by the CBDT for filing the Appeal before the Tribunal, thus the total tax effect of the deletion made by the CIT(A), will fall under the sum of Rs. 3 lacs. In that situation, the Appeal by the Revenue before the Tribunal cannot be made, as per necessary CBDT Circular in this regard. The penalty in this case has been levied on account of disallowance made in accordance with Rule 8D read with section 14A. There has been no concealment or furnishing of inaccurate particulars by the assessee in this case. The disallowance has been made by computing the sums which were duly disclosed in the return and accounts of the assessee. See Hindustan Steel vs. State of Orissa [1969 (8) TMI 31 - SUPREME Court] & CIT vs. Reliance Petro Products Ltd. [2010 (3) TMI 80 - SUPREME COURT] wherein held that mere submitting a claim which is incorrect in law would not amount to giving inaccurate particulars of the income of the assessee. In favour of assessee.
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