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2015 (3) TMI 60 - AT - Income TaxPenalty u/s 271(1)(c) - AO levied penalty in respect of the addition made on account of fall in GP, disallowance of depreciation and deduction claimed u/s.80IB - Held that:- There is no dispute with regard to the deletion of addition in respect of the addition of ₹ 25,46,363/- made on account of fall in GP and the addition made on account of disallowance of deduction amounting to ₹ 2,38,533/-, the AO has disallowed the deduction on the basis that the assessee did not disallow the interst of ₹ 5,82,803/-. The ld.counsel for the assessee submitted that the assessee had, in fact, disallowed the interest and rectification order u/s.154 of the Act was passed by the AO and rest of the disallowance was deleted by the Tribunal vide order dated 12/08/2011 in ITA No.3496/Ahd/2008 (supra). These facts are not controverted by the Revenue by placing any contrary material, therefore we hereby direct the AO to delete the penalty levied on an amount of ₹ 2,38,533/-. In view of the fact that the assessee has claimed depreciation during the year under consideration. The Revenue has not controverted the same, therefore following the ratio laid down in the case of CIT vs. Reliance Petroproducts Pvt.Ltd.(2010 (3) TMI 80 - SUPREME COURT ), we are of the considered view that the ld.CIT(A) was not justified in confirming the penalty on this issue, therefore the AO is hereby directed to delete the penalty levied on addition of ₹ 2,32,001/- - Decided in favour of assessee.
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