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2012 (10) TMI 844 - AT - Income TaxPenalty u/s. 271(1)(c) - excess deduction u/s. 80HHC - CIT(A) deleted the levy - Held that:- Disallowance has resulted on account of retrospective amendment in section 80HHC by way of Taxation Laws (second amendment) Act, 2005 with retrospective effect from 1.4.98. These provisions were not there in the relevant section at time when assessee filed return of income on 31st October, 2000. At this time the assessee made a bonafide deduction u/s. 80HHC, on the basis of certificate issued by the Chartered Accountant in the prescribed Form No. 10CCAC. Moreover, when assessee has disclosed all the material facts for computation of his income, it could not be said that the at time when assessee filed return, he had failed to disclose fully and truly all material facts necessary for assessment. As decided in C.I.T., Ahmedabad Versus Reliance Petro Products Pvt. Ltd. [2010 (3) TMI 80 - SUPREME COURT] it was up to the authorities to accept its claim in the Return or not. Merely because the assessee had claimed the expenditure, which claim was not accepted or was not acceptable to the Revenue, that by itself would not attract the penalty u/s 271(1)(c) & if the contention of the Revenue is accepted then every Return where the claim made is not accepted by AO for any reason the assessee will invite penalty under Section 271(1)(c) - in favour of assessee.
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