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2016 (7) TMI 403 - HC - Income TaxPenalty proceedings u/s 13 of the Interest Tax Act, 1974 - filing of in-accurate particulars of interest chargeable to Interest Tax Act - Held that:- The levy of penalty by the Assessing Officer was on unjustified grounds and the CIT(A) rightly deleted the penalty which was rightly upheld by the Tribunal. The Assessing Officer did not give any finding that inaccurate particulars were furnished by the assessee. It appears that the assessee was under a bonafide impression that its case was covered by the decision of the Madras High Court. The assessee had made the claim in the return filed and in the original proceedings the claim was rejected whereas in the first appeal the claim was allowed by the CIT(A). The assessee has relied upon expert opinion. It cannot be said that the assessee had filed inaccurate particulars of income or there was any conscious effort on the part of the assessee to furnish inaccurate particulars of chargeable interest. In that view of the matter, we are of the opinion that penalty proceedings u/s 13 of the Interest Tax Act was wrongly initiated. Therefore, the questions are answered against the appellant – revenue and in favour of the assessee.
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