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2006 (10) TMI 263 - AT - Income TaxPenalty imposed u/s 271(1)(c) - concealment of income or filing of inaccurate particulars of income - claim of deduction u/s 80-IB, filed in the original return of income - HELD THAT:- The case involves genuine difference of opinion with regard to deduction provided under the statute between the assessee and the tax authorities and is thus, clearly outside the scope of Explanation 1 to section 271(1), as the assessee has made full disclosure of all the relevant facts and has acted bona fide. The assessee has disclosed all the material facts necessary for its assessment and the only question is with regard to the interpretation of the relevant provision of law allowing deduction to the assessee upon fulfilling certain conditions laid down in the relevant provision of law. There is no material before us to suggest that the assessee has not disclosed any relevant particulars or facts before the authorities and has not acted bona fide. Thus, we hold that it is not a fit case for levy of penalty u/s 271(1)(c), which is accordingly cancelled and the grounds of appeal of the assessee are allowed. We want to make it clear that our decision is limited only with regard to the validity of penalty imposed u/s 271(1)(c) and shall not effect the merits of claim of the assessee for deduction u/s 80-IB(10) of the Act, which may be subject-matter of Revision Application pending before the Ld. CIT. In view of our decision cancelling the penalty imposed u/s 271(1)(c) in this case, the present Stay Application of the assessee becomes infructuous - In the result, the appeal of the assessee is allowed.
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