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2016 (11) TMI 945 - AT - Income TaxPenalty u/s 271(1)(c) - wrong claim of deduction under section 54F - Held that:- Only ground on which the assessee's claim of deduction 54F was disallowed was flats Nos. 103 and 104 are two separate properties. It is the claim of the assessee that these two flats are adjacent to each other and contiguous, hence, to be treated as one flat. In this regard, it is to be noted that the expression "a residential house" as provided under section 54F is a subject matter of judicial interpretation in a number of cases and it has been held that "a" would not denote one residential house. Therefore, in our view, the issue relating to the assessee's claim of deduction under section 54F, is debatable in nature. Merely because the assessee in the course of assessment proceedings, agreed for disallowance of its claim for deduction under section 54F, will not lead to a conclusion that the assessee has either furnished inaccurate particulars of income or concealed particulars of his income. That being the case, in our view, it is not a fit case for imposition of penalty under section 271(1)(c). Accordingly, accepting the assessee's explanation, we delete the penalty imposed under section 271(1)(c) of the Act. - Decided in favour of assessee.
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