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2022 (3) TMI 1276 - ITAT AHMEDABADLevy of penalty u/s 271(1)(c) - disallowance of 100% of the expenses claimed by the assessee which was restricted to 50% on the reasoning that the other associated/sister concern of the assessee also availed the benefit of research and development activity carried out by the assessee - HELD THAT:- As decided in own case [2021 (12) TMI 1320 - ITAT AHMEDABAD] as regards the main provisions of section 271(1)(c) we find that the genuineness of the expenses were not doubted by CIT (A). As only alleged that the associated concern /sister concern have availed the benefit of the expenditures incurred by the assessee out of research and development activity - The entire expenses cannot be allowed as deduction to the assessee. As per the learned CIT (A) the impugned expenses should also be allocated to the other units of the assessee group concern which availed the benefit of research and development activity carried out by it. There was no doubt raised by the authorities below as far as genuineness of the expenses is concern. Undeniably research and development facility maintained by the assessee was approved by DSIR. What was doubted the quantum of the expenses by the learned CIT (A) which has led to the present penalty proceedings. Claim of the assessee at the most can be regarded as inaccurate claim which cannot be equated with the inaccurate particulars of income. It is for the reason that nothing has been brought on record by the authorities below suggesting that the assessee has furnished the particulars of income with dishonest intent. - Decided in favour of assessee.
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