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2017 (4) TMI 1144 - AT - Income TaxPenalty levied under Section 271(1)(c) - claiming deduction under Section 10A and 10B - selection of assessment year - Held that:- It is not a case of unearthing the income during the course of search or survey proceeding. The assessee claimed deduction under Section 10B of the Act by furnishing all the particulars of income. Claim under Section 10B of the Act is a statutory claim under the scheme of Income-tax Act. The Assessing Officer found that the manufacturing activity of the assessee was commenced from the assessment year 2000-01. Therefore, the assessee, at the best, can make claim under Section 10B of the Act from the assessment year 2000-01 to 2009-10. The Assessing Officer has also found that the assessee obtained approval as 100% Export Oriented Unit on 16.03.2005. Therefore, the assessee can claim only from assessment year 2005-06 till 2009-10. The assessee’s main contention is that there are two amendments to Section 10B of the Act one made in the year 2008 and another in the year 2009. It is not in dispute that the Sunset Clause for exemption was extended. In view of the confusion in the mind of taxpayer and officers, the CBDT also clarified by issuing circular. Therefore, it is a case of misunderstanding the statutory provision by the assessee and the officers. The assessee understood the provision of exemption under Section 10B of the Act in a particular manner and the Assessing Officer has understood the same in another manner. There was a real confusion as stated above in view of extension of Sunset Clause and amendment made in Finance Act, 2008 and 2009. Therefore, the claim made by the assessee being a bona fide one, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly deleted the penalty levied by the Assessing Officer. As found by the Apex Court in Reliance Petroproducts (P.) Ltd. (2010 (3) TMI 80 - SUPREME COURT) mere making a claim under Section 10B of the Act after furnishing all the particulars of income, cannot be a reason for concluding that the assessee has furnished inaccurate particulars or concealed any part of income. - Decided in favour of assessee
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