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2019 (12) TMI 497 - ITAT AHMEDABADPenalty u/s 271(1)(c) - deduction of guesthouse expenses - HELD THAT:- Whether the assessee has furnished inaccurate particulars of income by claiming the guest house expenses incurred by it. The wrong claim made by the assessee for the guest house expenses in the income tax return cannot be equated with inaccurate particular of income. It is because the genuineness of the guest house expenses incurred by the assessee was not in doubt, but the same was wrongly claimed in the profit and loss account. There was the short fall of the recoveries against the guest house expenses, that too on account of depreciation allowance amounting only. Had there been some more recoveries against the guest house expenses, then there would not have been any disallowance of such expenses. Thus we are of the view that the assessee has not deliberately claimed such expenses. Once the assessee has furnished all the particulars of expenses which were correct but wrongly claimed as deduction, does not attract the penalty. We hold that the assessee has made the wrong claim for the guest house expenses. But the wrong claim does not mean that the assessee has furnished inaccurate particular of income. Similarly, the disallowance of the repair expenses on estimated basis cannot be subject matter of the penalty as the questions for concealing and furnishing inaccurate particular of income does not arise. Penalty levied u/s 271(1)(c) is not justifiable in the given facts and circumstances. Accordingly, we delete the penalty imposed by the authorities below. Hence, the ground of appeal of the assessee is allowed.
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