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2012 (8) TMI 889 - ITAT HYDERABADPenalty u/s 271(1)(c) - Wrong claim of loss - Held that:- Mere making of a wrong claim by the assessee by itself shall not constitute concealment of income or furnishing inaccurate particulars of income. The Assessing Officer has to complete the assessment after verifying various claims of the assessee. It is very much necessary to verify the claim of the assessee and if it is a genuine claim it has to be allowed. The claim of the assessee could not be allowed because provisions of the Act that were amended with effect from April 1, 2005 and the assessee has made a wrong claim in considering the new amendments and in our opinion, there is a bona fide error on the part of the assessee and that cannot be a reason for levy of penalty. More so, the assessee admitted the mistake in the course of assessment proceedings. Being so, we are of the opinion that there is a reasonable cause in this case. The provisions of section 271(1)(c) of the Act give discretionary powers to the Assessing Officer to levy or not to levy penalty in the case of concealment of income or furnishing inaccurate particulars of income. - Even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in refusing to impose penalty, when there is a technical or venial breach of the provisions of the Act or where the breach flows from a bona fide belief that the offender is not liable to act in the manner prescribed by the statute - Decided against Revenue.
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