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2017 (6) TMI 780 - AT - Income TaxLevy of penalty u/s 271(1)(c) - addition of interest on compensation received as exempt u/s 10(37) not offered to tax - Held that:- As at the time of filing of return of income since the interest received by it pertained to section 28 of the Land Acquisition Act, as claimed by the assessee all along and not disputed by the Revenue, he was of the belief that the interest was a capital receipt to be treated as compensation. Though section 145A(b) and Section 56(viii) do categorically state that interest on enhanced compensation is to be taxed on receipt but the said sections do not clarify that interest for the purposes of the said sections includes interest under section 28 of the Land Acquisition Act alongwith interest under section 34 of the Land Acquisition Act. The assessee therefore, we hold, had under a bonafide belief treated the interest on enhanced compensation as being in the nature of compensation, and thus exempt u/s 10(37) of the Act. The assessee having disclosed all particulars of his income pertaining to interest on enhanced compensation and having claimed the same as exempt under a bonafide belief, we hold that the assessee’s case is squarely covered by case of Reliance Petroproducts (P.)ltd. [2010 (3) TMI 80 - SUPREME COURT] which states that merely making an incorrect claim in law would not tantamount to furnishing of inaccurate particulars of income when admittedly information given in the return is not found to be incorrect or inaccurate. Further it cannot be said that the claim of the assessee was false and therefore the decision in the case of Zoom Communication (2010 (5) TMI 34 - DELHI HIGH COURT ) would not apply in the present case. - Decided in favour of assessee.
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