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2014 (4) TMI 315 - AT - Income TaxPenalty levied u/s 271(1)(c) of the Act - Excess claim u/s 10B of the Act – Held that:- The decision in Income Tax Officer Ward-2(1) (4) Versus M/s. Greytrix (India) Pvt. Ltd. [2013 (1) TMI 381 - ITAT MUMBAI] and Income Tax Officer 3(2) (1), Mumbai Versus M/s Jewelex International P Ltd., Mumbai [2010 (9) TMI 906 - ITAT MUMBAI] followed - once a conclusion is reached that the interest income forms part of total income, sub section 4 of section 10B takes over and the interest income can be included in the profits for the purposes of claiming deduction u/s 10B of the Act - levy of penalty on excess claim made u/s 10B for inclusion of the interest income is not sustainable. Inclusion of insurance and freight charges – Held that:- Levy of penalty for inclusion of the insurance and freight charges within the excess claim, section 10B of the Act specifically excludes the insurance and freight charges from the export turnover - the assessee has not shown any tangible material or basis as to why the clear statutory provision which excludes the insurance and freight charges has been included by the assessee in the claim - the voluntary disclosure does not release the assessee from the mischief of penal proceedings - The law does not provide that when an assessee makes a voluntary disclosure of his concealed income, he has to be absolved from penalty – thus, levy of penalty for inclusion of the insurance and freight charges within the excess claim is justifiable – thus, levy of penalty on excess claim made u/s 10B for inclusion of the interest income is not sustainable in law and levy of penalty for inclusion of the insurance and freight charges is justifiable on facts – Decided partly in favour of Assessee.
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