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2015 (10) TMI 2551 - AT - Income TaxLevy of penalty under S.271(1)(c) - claim u/s 80IB made - Held that:- A new line of business engaged in by the assessee, viz. manufacture and sale of electronic street light timers, has come to light, and it led to disclosure in the returns filed in response to notices under S.153A, higher income than what was declared earlier by the assessee. Assessing Officer in the present case is not attributing any concealment or furnishing of inaccurate particulars in respect of the entire income relating to this new line of business, but confining himself only to the claims made for deduction under S.80IB, while proposing penalty under S.271(1)(c). This approach of the Assessing Officer, in considered opinion is not justified. Having not proposed any penalty in relation to the larger portion of profit of the new line of business, there is no justification for penalty in relation only to the claim made by the assessee for deduction under S.80IB of the Act. Had the assessee not made the claim for deduction under S.80IB, if the approach of the Assessing Officer is approved, there is no case for penalty for concealment, because everything would have remained profit of the new line of business discovered, in relation to which no penalty proceedings were initiated. Considering in the light of the fact that disclosure of profits from such business did not attract any penalty u/s 271(1)(c), making a claim u/s 80IB out of those profits can only be considered as genuine claim. This is not a fit case for levy of penalty under S.271(1)(c) - Decided in favour of assessee.
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