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2014 (11) TMI 981 - AT - Income TaxPenalty under section 271(1)(c) - claim of deduction under section 80-IB disallowed - CIT(A) deleted penalty levy - Held that:- The assessee while making claim of deduction under section 80-IB in computation of income disclosed complete facts and claimed to have permanent registration as small scale unit issued by the District Industries Centre, Patiala. The claim of the assessee was qualified by the auditor as well. The assessee referred to various notifications issued by the concerned Department through which time to time, the monetary limits were varying and ultimately the last notification was also favourable to the assessee. In the case of the assessee, the value of exclusive plant and machinery as on April 1, 2004 was ₹ 2.93 crores and because of the addition made in the assessment year under appeal of ₹ 58.33 lakhs, the total investment comes to ₹ 3.51 crores. It is, therefore, clear that the assessee was small scale industrial unit and was entitled for deduction under section 80-IB earlier and it is only because of some additions made in year under consideration, the assessee would not have qualified for deduction under section 80-IB of the Act. The assessee, therefore, made a bona fide claim to deduction under section 80-IB as per the notification issued lastly which covered such unit upto ₹ 5 crores though there may be some restriction thereon. It is, therefore, not a case of filing of inaccurate particulars of income or concealing the particulars of income for imposition of penalty under section 271(1)(c) - Decided in favour of assessee.
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