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2019 (7) TMI 380 - ITAT CHENNAIPenalty u/s 271(1) (c) - disallowances of claim of exemption u/s.10(13A) and disallowance of bank charges and repairs - penalty was levied for filing inaccurate particulars of income - HELD THAT:- But the fact remain that perusal of the assessment order would suggest that assessee had not filed any details whatsoever in support of claim of HRA. As regards to other addition order, it is clearly stated that assessee himself had agreed for the addition and therefore it cannot be said that the appellant had filed inaccurate particulars of income resulting an addition to the returned income. Therefore the very basis of levy of penalty has no legs to stand. Further, it is settled law that mere disallowance of claim does not entitle levy of penalty as held in the case of CIT vs. Reliance Petro Products Ltd, [2010 (3) TMI 80 - SUPREME COURT] . Furthermore the employer had not disputed the claim for exemption of HRA. Therefore in the light of the above findings, it is not a fit case for levy of penalty. Accordingly, we direct the AO to delete the penalty made u/s.271(1) (c) - Appeal of the assessee is allowed.
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