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2015 (6) TMI 566 - AT - Income TaxPenalty u/s 271(1)(c) - disallowances on assessee’s wind mills, interest amount on account of interest bearing funds utilized in interest free advances and the one made under section 40A(3) @ 20% of the cash payment - CIT(A) deleetd penalty levy - Held that:- It is evident that the assessee chose to hand over the windmills back to the vender since the State government had not accorded approval of the ownership transfer. The Revenue sought to tax the very sum of ₹ 2.40 crores received in the following assessment year as capital gains. The tribunal in the subsequent year held that once it has not become owner in the impugned assessment year, no capital gain had arisen to be taxed on account of handing over the windmills back to the owner. All these facts indicate that the assessee has not furnished any inaccurate particulars of income. The present does not seem to be an instance of evasion of taxable income. We reiterate that quantum and penalty proceedings under the Act stand on a different footing and each and every disallowance/addition does not lead to automatic imposition of penalty as held by hon’ble apex court in Reliance Petroproducts Ltd. (2010 (3) TMI 80 - SUPREME COURT ). Therefore, we hold that the Assessing Officer had wrongly held assessee’s case as that of furnishing of inaccurate particulars of income under section 271(1)(c) of the Act. We also find in the same tune that the Assessing Officer has computed the other disallowances of interest amount and the one under section 40A(3) only on the basis of assessee’s accurate particulars already submitted on record in the course of scrutiny. Therefore, the impugned penalty qua these issues has also been rightly deleted. The CIT(A)’ finding under challenge are upheld. - Decided in favour of assessee.
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