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2022 (3) TMI 125 - ITAT SURATPenalty levied u/s 271(1)(c) - deduction of LTCG u/s 54F - HELD THAT:- LTCG was disallowed by Assessing Officer by taking view that in the balance-sheet of assessee, the assessee owned more than one residential flat. It is further matter of recorded that disallowance of capital gains was upheld by CIT(A) and on further appeal again upheld by Hon'ble Tribunal. Before us, the assessee, besides the other submissions, submits before us that assessee computed LTCG after due deliberation and on legal advice and the same is not accepted by the Revenue authorities, the assessee cannot subject to levy of penalty under section 271(1)(c), we find merit in the submission of Ld. AR of the assessee. The assessee acted in bona fide belief and made the claim is not acceptable due to any reason and was disallowed the same cannot be subject to levy of penalty under section 271(1)(c) . We are of the constrained view that if the claim of assessee for deduction of LTCG was not found admissible for deduction under section 54F, the assessee cannot be subject to levy of penalty under section 271(1)(c). Thus, we direct the AO to delete the entire penalty. - Decided in favour of assessee.
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