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2010 (2) TMI 979 - AT - Income TaxPenalty u/s 271(1)(c) - Deduction u/s 80-O disallowed - wrong claim of deduction of section 80-O which is not allowable - HELD THAT:- Keeping in view that the assessee's explanation that the claim of deduction u/s 80-O was claimed on the basis of advice of the tax consultant supported by tax audit report was not found to be false or untrue, we are of the view that there is no concealment or furnishing of inaccurate particulars on the part of the assessee. This view also finds support from the judgment of Chandrapal Bagga v. ITAT [2003 (1) TMI 55 - RAJASTHAN HIGH COURT] held that when the assessee has disclosed the transaction which is the basis for capital gains tax and though wrongly claimed exemption from the capital gains tax, but that cannot be a case of penalty u/s 271(1)(c). If it has claimed any exemption after disclosing the relevant basic facts, and not offered that amount for tax, in such cases, penalty should not be imposed. In this view of the matter and keeping in view the ratio of decisions relied on by learned counsel for the assessee the penalty imposed by the AO and sustained by the learned CIT (A) is deleted. The grounds taken by the assessee are therefore, allowed. Assessee's appeal stands allowed.
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