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2015 (9) TMI 955 - AT - Income TaxPenalty under section 271(1)(c) - disallowance of deduction under section 80IB and 80HHC - Held that:- Undisputedly the issue of deduction under section 80IB and 80HHC of the Act on export incentive was debatable. Various Benches of the Tribunal have taken a contrary view; rather there was a conflict in the view of different High Courts. The controversy in this regard was set at rest by the Hon'ble Apex Court in the case of Liberty India vs. CIT (2009 (8) TMI 63 - SUPREME COURT ). But before this judgment, the issue was highly debatable and therefore on a debatable issue penalty should not be levied under section 271(1)(c) of the Act, as the claim of deduction was made on the basis of a bonafide belief after relying upon certain judgments of the Tribunal/High Courts. In such circumstances, we are of the view that penalty under section 271(1)(c) of the Act cannot be levied. We have also carefully examined the order of the ld. CIT(A) and we find that the ld. CIT(A) has adjudicated the issue in the light of the judicial pronouncements of the Apex Court and various High Courts. Since we do not find any infirmity in the order of the ld. CIT(A), we confirm his order deleting the penalty. - Decided in favour of assessee.
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