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2017 (6) TMI 395 - ITAT AHMEDABADPenalty u/s.271(1)(d) - non-inclusion of certain expenditure for the purpose of FBT liability - Held that:- The assessee has come out with complete disclosure of disputed items of expenditure not included for the purpose of determination of fringe benefits tax liability in the return of income. Thus, the bonafides of the action of the assessee cannot be tainted with any doubt. We also note the attendant fact that the assessee has ear-marked the quantum of fringe benefit tax in the separate escrow account pending resolution of the controversy. Thus, there are sufficient indicators existing in the case that the assessee has acted on bonafide considerations. Needless to say a finding in the quantum proceedings that a particular expenditure is susceptible to provisions of FBT cannot automatically be adopted for the purposes of s.271(1)(d). The assessee has successfully discharged the initial onus placed on it for rebut5ting presumption against it. Therefore, we are unable to see any error in the action of the CIT(A) in deleting the penalty imposed by the AO under s.271(1)(d) of the Act. - Decided in favour of assessee.
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