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2018 (11) TMI 390 - AT - Income TaxLevying penalty u/s 271(1)(c) - treating income from sale of fixed assets as well income by way of profit from sale of other fixed assets to be income from core shipping activities albeit the said claim stood rejected by all the authorities concurrently including Mumbai-tribunal in assessee’s own case for impugned assessment year 2006-07 - Held that:- This issue being debatable involving interpretation of legal provisions of a newly inserted special scheme of taxation of shipping companies and the explanations offered by the assessee to that effect cannot be termed as not bonafide albeit rejected even by tribunal in quantum. Thus due to detailed reasoning as set out above , we are of the considered view that penalty u/s 271(1)(c) of the 1961 Act in the instant case before us is not exigible as explanations as were submitted by the assessee were bonafide explanations which has taken it out of clutches of penalty provisions as were contained in Section 271(1)(c) of the 1961 Act and hence we have no hesitation in deleting the penalty as levied by the AO u/s 271(1)(c) - Decided in favour of assessee.
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