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2018 (6) TMI 749 - AT - Income TaxLevy of penalty u/s 271(1)(c) - additions made by the AO pertaining to patently wrong claims of the assessee relating to encashment of bank guarantee - Held that:- Penalty on the bank guarantee encashed and claimed as deduction is already allowed by the coordinate bench, hence, addition itself is deleted - therefore, on this sum penalty u/s 271(1)(c) cannot survive. Penalty levied on account of disallowance of loss on foreign exchange - in which AY such loss is allowable - Held that:- Assessee originally claimed such loss in AY 2009-10 and AO allowed it u/s 154 of the Act for AY 2008-09. Therefore, it cannot be said that the assessee was not under the bonafide belief about the allowability of loss in AY 2009-10 - thus we do not find any infirmity in deleting the penalty on disallowance of notional loss of ₹ 18.28 crores. Penalty levied on account of loss of mark of market transaction on foreign exchange hedging contract - Held that:- CBDT instruction dated 23.03.2010 was not available to the assessee at the time of filing of the return of income and became available on assessment proceedings - till the time of instruction, there were several cases where it has been allowed as deduction as accrued allowability and not as contingent allowability - thus where there are possible two views possible on an issue, penalty thereon cannot be levied - hence we not find any infirmity in the order of the ld CIT(A) in deleting the penalty u/s 271(1)(c) of the Act - appeal of the revenue is dismissed.
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