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2015 (7) TMI 619 - BOMBAY HIGH COURTPenalty u/s 271(1)(c) - Assessee in it's accounts, had shown borrowed funds and interest free advances to it's sister concerns - Tribunal accepted the reasoning of the Commissioner that the penalty cannot be levied merely because the claim of the Assessee is found to be incorrect - Held that:- In the present case when the Assessee had bonafide pleaded that it was covered by a particular position of law and that one authority i.e. the Tribunal had passed certain orders in it's favour during the assessment proceedings, it could not be said that the Assessee fell within the ambit of Section 271(1)(c). The assertion of the Assessee that it was not served with a notice and therefore cannot be blamed for not filing a reply, has gone uncontroverted. This being the position we do not find any perversity with the decision of the Commissioner (Appeals) and the Tribunal in deleting the penalty imposed by the Assessing Officer. In any case this is a possible view of the matter upon appreciating the evidence. In the circumstances, both the grounds urged by the Revenue cannot be termed as substantial questions of law. - Decided against revenue.
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