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2016 (3) TMI 16 - AT - Income TaxPenalty imposed U/s 271(1)(c) - assessee has made wrong claim of deduction U/s 10B on the interest income which is not an eligible income - Held that:- The assessee had furnished details of interest in return and in audit report, therefore, no particulars of income have been concealed. The matter is debatable on the deduction U/s 10B is allowable on interest income or not, as such, the assessee had claimed that these receipts are directly linked with the export business. However, the explanation of the assessee was not found bonafide to the Assessing Officer but the fact is that all particulars of income has been disclosed and assessee’s explanation is bonafide on facts and circumstances of the case. The issue is also debatable issue, no penalty U/s 271(1)(c) of the Act can be imposed. Hon’ble Delhi High Court in the case of CIT Vs. Nalwa Sons Investments Ltd. (2010 (8) TMI 40 - DELHI HIGH COURT ) has held that any addition in regular assessment and thereafter the case is assessed U/s 115JB and finally tax paid by the assessee on the basis of Section 115JB of the Act. The concealment on account of any regular assessment, does not lead to evade the tax at all. Therefore, penalty U/s 271(1)(c) is not justified. In this year also, the assessee has disclosed all the particulars of income in return alongwith audit report. The matter is whether interest income has direct nexus with the export business or not. Therefore, we uphold the order of the ld CIT(A) in both the assessment years. - Decided in favour of assessee
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