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2015 (10) TMI 2752 - ITAT CHANDIGARHLevy of penalty u/s 271(1)(c) - deduction u/s 80IC claimed @100% was reduced to 25% of the total profit declared being the 6th year of manufacturing activities of the Industrial undertaking - bonafide claim - HELD THAT:- Assessee claimed deduction under section 80IC in assessment year under appeal in a bonafide manner and mere fact that claim of assessee has been disallowed, would not prove it to be a fit case of levy of penalty for filing inaccurate particulars of income. The issue of claim of deduction was debatable and bonafide. However, there was conflict for determination of provision of law. Merely making a claim of 100% deduction against 25% as per opinion of the Assessing Officer under section 80IC of the Act would not be at par with concealment of income or furnishing inaccurate particulars of income. It is not a fit case of levy of penalty under section 271(1)(c) of the Act because it is well settled that levy of penalty is not automatic in each and every case as it depends upon facts and circumstances of the case. Since the assessee’s claim of deduction under section 80IC have been allowed in earlier years @ 100% and admittedly assessee undertook substantial expansion in assessment year under appeal, therefore, assessee made bonafide claim of deduction under section 80IC of the Act and there were no judicial pronouncements against the assessee on the date of making such a claim. Therefore, it could not be construed that assessee furnished inaccurate particulars of income so as to levy the penalty under section 271(1)(c) - set aside the orders of authorities below and cancel the penalty.- Decided in favour of assessee.
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