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2013 (10) TMI 1220 - HC - Income TaxPenalty u/s 271(1)(c) of the Income Tax Act – Claim of expenditure made in P & L A/c – Held that:- Reliance has been placed upon the judgment in the case of CITv. Reliance Petro Products P. Ltd. [2010 (3) TMI 80 - SUPREME COURT] - So long as the assessee had not concealed any material or the factual information given by him has not been found to be incorrect, there would be no imposition of penalty under section 271(1)(c) of the Income-tax Act. Even if the claim made by the assessee is unsustainable in law, so long as the assessee substantiated the explanation offered by him or the same is found to be bona fide, Explanation 1 to section 271(1)(c) would not stand attracted. However, when the assessee does not substantiate the explanation or the same is found to be lacking in bona fide, Explanation 1 to section 271(1)(c) would stand attracted – In the present case, there was no lacking in bona fides in the claim of the assessee originally made – Decided against the Revenue.
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