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2019 (5) TMI 1677 - ITAT CHENNAILevy of penalty u/s. 271(1)(c) - reference to the income assessed u/s. 115-JB - bonafide belief - whether the explanation offered by the assessee in response to the show cause notice u/s. 271(1)(c) of the Act is a plausible explanation or not? - HELD THAT:- There is no material on record establishing as to how the appellant had entertained belief that the profits exempt from tax under the provisions of s. 10B of the Act are not liable to tax u/s. 115-JB of the Act. Thus, it is merely bald explanation, therefore, it cannot held to be a plausible explanation and the levy of penalty u/s. 271(1)(c) of the Act is justified having regard to the ratio of the decision of Mad Data Pvt. Ltd. v. CIT [2013 (11) TMI 14 - SUPREME COURT] Hon’ble High Court of Delhi in the case of Nalwa Songs Investments Ltd. [2010 (8) TMI 40 - DELHI HIGH COURT] is not applicable in the present case, as the penalty is levied with reference to the income assessed u/s. 115-JB of the Act, we do not find any merit in the appeal filed by the assessee.
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