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2017 (6) TMI 543 - AT - Income TaxPenalty u/s 271(1)(c) - addition made u/s 35DDA - Held that:- On perusal of the order of the coordinate bench it is apparent that the claim of the assessee was based on several decisions including the decision of Hon'ble Delhi High Court in CIT Vs. KJS India Pvt. Ltd (2011 (9) TMI 667 - Delhi High Court) and coordinate bench has also discussed the claim of the assessee thoroughly. Merely because the claim of the assessee was not accepted by the concurrent authority despite there being plausible judicial precedents in favour of the assessee, the claim of the assessee cannot be said to be false. It is also an established principle that penalty u/s 271(1)(c) of the Act cannot be levied on debatable issues. Hon'ble Supreme Court in case of CIT Vs. Reliance Petro Products Pvt. Ltd [2010 (3) TMI 80 - SUPREME COURT ] has held that merely on the ground that the claim of the assessee is incorrect cannot tantamount to furnishing of incorrect claims. - Decided in favour of assessee.
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