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2011 (10) TMI 490 - AT - Income TaxPenalty u/s 271(1)(c) - erroneous claim u/s 80RRA - Held That:- In view of assessment in AY 2004-05 to 2006-07 , it is observed that claim was made after due deliberation and consideration in the years in which it was thought that the same is admissible. The explanation that the claim was made on the basis of advice that the deduction is admissible as in past has been found to be factually incorrect as no such claim has been made for assessment years 2004-05 and 2005-06. The assessee is not entitled to deduction for assessment year 2006-07 also, but it is not known as to what has happened to the claim made by him under the provision in this year. Also the claim was withdrawn after its detection and assessee waited till the demand was raised by the AO on passing the order. Therefore in view of decision in case of CIT vs Zoom Communication (P) Ltd. (2010 (5) TMI 34 - DELHI HIGH COURT) & Gurbachan Lal (2000 (11) TMI 44 - DELHI HIGH COURT) wherein held that if the assessee makes a claim which is not only incorrect in law but is also wholly without any basis and the explanation furnished by him for making such a claim is not found to be bonafide, it would be difficult to say that he would still not be liable to penalty under Section 271(1)(c) - as the explanation furnished by the assessee to be false. Penalty u/s 271(1)(c) is leviable - Decided against assessee.
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