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2016 (7) TMI 832 - AT - Income TaxPenalty u/s. 271(1)(c) - disallowance of claim of deduction u/s. 80IB on processing charges, miscellaneous income and on interest on employee loans - Held that:- The disallowance may have been confirmed in the quantum proceedings, however, such a finding may not be a final word so far as penalty proceedings are concerned, because the considerations, which arise in penalty proceedings are separate and distinct from the assessment proceedings. In the penalty proceedings, the assessee can point out the factors which had lead to a bona fide belief for making the claim at the time of filing the return of income. Here in this case, the assessee not only by way of notes in the audited accounts but also before the authorities below have relied upon the decisions wherein similar nature of income were held to be allowable for deduction u/s. 80 IA. Thus, the claim of the assessee was genuinely bona fide at the time of filing the return of income. Not only that, some of the items of “other income” like processing charges, insurance claim there are still decisions which are in favour of the assessee post the judgment of Liberty India Ltd. Thus, it cannot be held that the assessee had made any false claim for which any penalty u/s. 271(1)(c) is warranted. Accordingly, on the facts and circumstances of the case, we are of the opinion that no penalty for furnishing of inaccurate particulars u/s. 271(1)(c) can be levied - Decided in favour of assessee
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