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2015 (11) TMI 636 - ITAT MUMBAIPenalty under section 271(1)(c) - difference between the reported and the assessed income on account of 'Non-compete fees' - Held that:- The only point of difference between the assessee and the Revenue is the relevant head of income under which the receipt from M/s. Termo Electron LLS India Pvt. Ltd. is liable to be taxed. Therefore, it is a case where a claim made in the return of income of taxing the receipt from M/s. Termo Electron LLS India Pvt. Ltd. under the head 'capital gain' has been found to be not sustainable in law. As per the authoritative pronouncement of the Hon'ble Supreme Court in the case of Reliance Petro Products Ltd. (2010 (3) TMI 80 - SUPREME COURT), such a fact-situation does not amount to furnishing of inaccurate particulars regarding income within the meaning of section under 271(1)(c) of the Act. Thus, on this aspect itself the penalty is unsustainable. The entire fact-situation of the dispute reveals that difference between the assessee and the Revenue revolves around the head of income under which the impugned receipt from M/s. Termo Electron LLS India Pvt. Ltd. is liable to be taxed. The Hon'ble Bombay High Court in the case of M/s. Bennett Coleman & Co. Ltd.(2013 (3) TMI 373 - BOMBAY HIGH COURT) held that where there is only a change of head of income and in the absence of facts to show that the claim of the assessee was not bonafide, penalty under section 271(1)(c) of the Act is not maintainable. On this count also, we find that the penalty imposed under section 271(1)(c) in the present case is unsustainable. - Decided in favour of assessee.
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