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2013 (4) TMI 96 - AT - Income TaxPenalty u/s 271(1)(c) - disallowances of repair expenses - Held that:- The Hon'ble Delhi High Court in the case of Devsons (P). Ltd. v. CIT [2010 (11) TMI 84 - DELHI HIGH COURT] has held that when a legal issue arises for consideration, which is debatable but the claim made by the assessee is not accepted, thereis no justification to invoke the penalty provisions under Section 271(1)(c). Assessee cannot be faulted and penalty should not be imposed because the assessee had taken a particular stand point, unless there are grounds or reasons to show that the assessee had not disclosed all the facts before the departmental authorities concerned. Also see Karan Raghav Exports P. Ltd. vs. CIT ( 2012 (3) TMI 335 - DELHI HIGH COURT), CIT vs. Zoom Communication P. Ltd. (2010 (5) TMI 34 - DELHI HIGH COURT) Thus in the absence of any other contrary material or distinguishing feature brought on record by the Revenue to show that the claim of deduction made by the assessee was not bonafide or bogus, respectfully following the ratio of the above decisions and the consistent view hold that there is no concealment on the part of the assessee which may call for levy of penalty u/s 271(1)(c) the penalty imposed by the A.O. and sustained by the CIT(A) is deleted. In favour of assessee.
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