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2019 (2) TMI 980 - AT - Income TaxPenalty imposed u/s 271(1)(c) - excessive deduction claimed u/s 35(2AB) - quantum of deduction claimed on account of part disallowance of expenditure by the DIS - Held that:- In any case of the matter, it is not the case of the department that the assessee is not eligible for claiming deduction under section 35(2AB) of the Act. In fact, the DSIR has not only recognised the R&D facility of the assessee but also approved the expenditure incurred by the assessee in respect of the R&D facility. The dispute arises only with regard to the quantum of deduction claimed on account of part disallowance of expenditure by the DISR. As observed earlier, the certificate of the DSIR in Form No. 3CL disallowing part of the expenditure was received by the assessee in November, 2013, i.e. at a much later stage, even after the AO has started enquiry with regard to assessee’s claim of deduction under section 35(2 AB) of the Act. Thus, upon considering the overall facts and circumstances of the case we are of the considered opinion that the assessee cannot be alleged of either furnishing inaccurate particulars of income or concealment of income. None of the conditions of Section 271(1)(c) of the Act in the instant case are satisfied. Accordingly we have no hesitation in deleting the penalty imposed - Decided in favour of assessee.
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