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2013 (12) TMI 922 - AT - Income TaxDeletion of penalty u/s 271(1)(c) of Income Tax Act, 1961 - Disallowance of expenses under section 14A – Inaccurate particulars of income furnished – Held that:- The penalty levied u/s 271(1)(c) of the Act was on the facts of the case and the law has rightly been deleted by the Ld. CIT(A) - the information and details in respect of exempt income and expenses incurred during the relevant year were available in the audited accounts filed with the A.O. - the information and details have not been found by the AO to be false or factually incorrect - Relying upon Godrej & Boyce Mfg. Co. Ltd. vs. Dy.CIT [2010 (8) TMI 77 - BOMBAY HIGH COURT] - Rule 8D will not be applicable and the very foundation of levy of penalty in the present case i.e. Rule 8D for making disallowance u/s 14A in the assessment year under consideration stands demolished and therefore, penalty cannot survive. There is no finding that any details supplied by the assessee in its Return were found to be incorrect or erroneous or false – Thus, there would be no question of inviting the penalty u/s 271(1)(c) of the Act - A mere making of the claim, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee - Such claim made in the Return cannot amount to the inaccurate particulars – Decided in favour of Assessee.
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