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2015 (8) TMI 1465 - ITAT MUMBAILevy of penalty u/s. 271(l)(c) - furnishing inaccurate particulars of income - treating the loss on foreign exchange fluctuation - Held that:- We find that there was difference of opinion between the AO and the assessee about treating the loss on foreign exchange fluctuation, that the assessee had furnished all the details about the claim made by it and had stated that after the repossession of the ship the transaction had become part of the working capital. Thus, all the details of about the claim were available on file. In our opinion, confirmation of an addition by higher judicial forum do not lead to automatic imposition of penalty u/s.271(1)(c)of the Act Penalty notice the assessee had filed an explanation and we are of the opinion that it was a plausible explanation. If any information is suppressed by the assessee and but for the attentiveness of the AO, it would have escaped taxation, the assessee has to be dealt with sternly, but not in a case where the assessee has filed an explanation that is prima facie reasonable. In the case under consideration the reply filed by it was neither fanciful nor totally unacceptable. We find that in the case of Reliance Petro Products P. Ltd.(2010 (3) TMI 80 - SUPREME COURT) the Hon’ble Supreme Court has held that merely because an assessee raises a claim which is eventually disallowed, that does not mean that the ingredients of clause (c) of section 271(1) of the Act are satisfied or fulfilled so as to justify imposition of a penalty. - Decided in favour of the assessee.
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