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2018 (5) TMI 712 - ITAT MUMBAIPenalty u/s. 271(1)(c) - claim of expenditure on rent disallowed - Held that:- There cannot be any reason for the assessee to deliberately claim the expenditure even knowing that it is not allowable. That being the case, the allegation of the department that the assessee has furnished inaccurate particulars of income is not borne out from the record. More so, when the assessee has furnished full particulars of the expenditure claimed and its accounts are audited. Notably, the auditors have also not pointed out that the disputed amount being in the nature of provisions are not allowable. Merely, because the assessee has accepted the addition would not automatically lead to the conclusion that it has furnished inaccurate particulars of income. Moreover, the contention of the assessee that considering the huge losses the assessee would not have derived any benefit by wrongly claiming such expenditure stands to reason . No infirmity in the order of the CIT(A) in deleting the penalty - Decided in favour of assessee.
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