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2015 (4) TMI 633 - HC - Income TaxPenalty under Section 271(1)(c) - deduction under Section 80-IB(7A) denied - Held that:- By making legal claim for deduction under Section 80-IB(7A) assessee is not guilty to concealment of income. In the earlier years, the A.O. himself has cancel the levy of the penalty for the similar reasons. When it is so, then the principal of consistency will have to be followed as per ratio laid down in the case of Radhasoami Satsang, [1991 (11) TMI 2 - SUPREME Court]. From the record, it also appears that the A.O. has not given any finding that the claim of the deduction was bogus. The A.O. has only stated that such claim was not leviable as the conditions envisaged under Section 80-IB(7A) were not fulfilled. Thus, the claim was found to be legally unacceptable, but it does not amount to furnish the inaccurate particulars/concealment of the income. It is a simple case of non-allowance of the legal claim for which the penalty is not desireable. Hence, we set aside the impugned order of the Tribunal and restore the order passed by the first appellate authority, who has rightly cancelled the levy of the penalty. - Decided in favour of the assessee
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