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2019 (12) TMI 254 - ITAT HYDERABADLevy of penalty u/s 271(1)(c) of the Act - exemption claimed u/s 54 of the IT Act - AO opined that the assessee has made an incorrect claim of deduction resulting in furnishing inaccurate particulars of income by not brought forwarding the correct income for the AY 2008-09 - HELD THAT:- A glance of provision of section 271(1)(c) would suggest that in order to be covered, there has to be concealment of the particulars of the income of the assessee. Secondly, the assessee must have furnished inaccurate particulars of his income. The instant case was not the case of concealment of the income, but, the case of wrong claim. The revenue argued that submitting an incorrect claim in law would amount to giving inaccurate particulars of such income. In order to expose the assessee to the penalty unless the case is strictly covered by the provision, the penalty provision cannot be invoked. By any stretch of imagination, making an incorrect claim in law cannot tantamount to furnishing of inaccurate particulars. Thus, making a wrong claim by the assessee cannot be said to be furnishing of inaccurate particulars of income by the assessee - the order of CIT(A) set aside - penalty levied u/s 271(1)(c) of the Act set aside - appeal allowed - decided in favor of assessee.
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