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2018 (4) TMI 395 - ITAT AHMEDABADPenalty levied u/s.271(1)(c) - Disallowance of deduction u/s 80HHC - Disallowance of weighted deduction u/s.35(2AB) - disallowance of prior period expenses - Arms Length Price of International Transaction - Disallowance of claim u/s. 80G - Held that:- Supreme Court of India in the matter of CIT vs. Reliance Petroproducts Pvt. Ltd.,(2010 (3) TMI 80 - SUPREME COURT), wherein it has been held that merely because the assessee has claimed the expenditure, which claim was not accepted or was not acceptable to the Revenue, that by itself would not, in our opinion, attract the penalty under section 271(1)(c). If we accept the contention of the Revenue then in case of every return where the claim made is not accepted by Assessing Officer for any reason, the assessee will invite penalty under section 271(1)(c). That is clearly not the intendment of the Legislature. In this matter some of the claim was not accepted by the department and disallowance were made. In our considered opinion, respectfully following the above said judgment penalty cannot be levied in such cases. Therefore, penalty is directed to be deleted.
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