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2019 (1) TMI 1394 - HC - Income TaxPenalty levied u/s 271(1)(c) - loss on account of foreign exchange fluctuation - claim as revenue expenditure disallowed - Held that:- This was a case where there was difference of opinion in the manner in which loss on account of foreign exchange fluctuation is to be treated. This being a pure difference of opinion is further corroborated by the fact that all details of the claim made were available with the Assessing Officer at the time of regular assessment proceedings. Mere rejection of claim made by the AO would not by itself lead to imposition of penalty under Section 271(1)(c) of the Act. The explanation offered by the respondent was found to be reasonable No suppression of facts and all particulars of its income were disclosed by the respondent in its regular assessment proceedings. Thus, merely disallowance of claim made by the Assessing Officer cannot by itself justify an imposition of penalty as held by the Apex Court in Reliance Petro Products Ltd (2010 (3) TMI 80 - SUPREME COURT). - Decided in favour of assessee.
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