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2015 (10) TMI 2174 - AT - Income TaxPenalty u/s 271(I)(c) - disallowances of deduction u/s 80IB - Held that:- The issue with regard to deduction u/s 80IB has been sent to the file of AO by ITAT. In view of these facts, the levy of penalty with respect to this disallowance is hereby cancelled. The AO is at his liberty to initiate the penalty on this issue, after re-deciding this issue Disallowance on account of interest - Held that:- It is seen by us from the order of ITAT that this disallowance has been deleted. Thus, the whole premise of levy of penalty on this issue ceases to exist. The very basis of levy of penalty is no more in existence, thus penalty cannot remain alive any more. - Decided in favour of assessee Disallowance of deduction u/s 80 HHC - Held that:- When the AO has found that penalty was not leviable with respect to similar disallowance made for deduction u/s 80HHC in A.Y. 2003-04, then following the same yardsticks, he should not take a different stand in this year and burden the assesse with rigorous provisions of penalty. - Decided in favour of assessee AO has made disallowance on the basis of return of income filed by the assessee and audit report of the assessee. The assessee has made its claim in the profit and loss accounts and computation sheet giving complete facts and particulars. Thus, it cannot be said that there was concealment of facts. The assessee had made a claim, duly supported with the audit report from the qualified accountant. The claim was not found allowable by the AO, in his opinion. Under these facts and circumstances, Hon’ble Supreme Court in the case of Reliance Petroproducts Pvt Ltd (2010 (3) TMI 80 - SUPREME COURT), has held that it would not be a fit case for levy of penalty. Merely because the claim of the assessee was not found allowable by the AO in its opinion, it should not ipso facto give rise to an inference that there was concealment of income or furnishing of inaccurate particular of income by the assessee. The Assessee cannot be fastened with the liability of penalty without there being a clear or specific charge. Fixing a charge in a vague and casual manner is not permitted under the law. Fixing the twin charges is also not permitted under the law. - Decided in favour of assessee
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