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2017 (4) TMI 186 - HC - Income TaxPenalty u/s 271(1)(c) - non-disclosure of benefits and advantages they had derived from the services and also describe the nature of the services and that its failure resulted not only in rejection of the transactional net marginal method but also reduction of losses - Held that:- Income-tax Appellate Tribunal's impugned order has elaborately dealt with the rationale in rejecting the Assessing Officer's imposition of penalty. This court is of the opinion that the view taken by the Income-tax Appellate Tribunal does not in any manner deviate against the Seventh Explanation to section 271(1)(c). Furthermore, having regard to the fact that the assessee's claim was in respect of a new line of business of manufacturing, introduced for the first time in the given year, its failure per se could not have triggered the automatic presumptive application of Seventh Explanation to section 271(1)(c) as perceived by the Revenue authorities in this regard. Undoubtedly, the application of the exception has to be based upon the facts of each case and no generalisation can be made. Given this reality, the court is satisfied that in the present instance, the Income-tax Appellate Tribunal did not commit any error of law. No substantial question of law arises.
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