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2019 (4) TMI 974 - HC - Income TaxPenalty u/s 271(1)(c) - excess claim of exemption u/s 54EC - HELD THAT:- As decided in THE PR. COMMISSIONER OF INCOME-TAX-18 VERSUS SHRI BHARATKUMAR MANEKLAL PARIKH [2019 (3) TMI 583 - BOMBAY HIGH COURT] assessee had not offered certain receipts to tax under bonafide belief that the same was not taxable. Quite apart from the existence of the letter dated 20th September, 2010 not being disputed by the revenue either before the CIT (Appeals) or the Tribunal, during the assessment proceedings undoubtedly the assessee had made full representation why according to his belief the receipt was not chargeable to tax. Merely because the AO did not accept such a stand of the assessee, would not automatically permit revenue to levy penalty. So much, it made abundantly clear by the Supreme Court through series of judgments particularly in case of Reliance Petroproducts Pvt. Limited [2010 (3) TMI 80 - SUPREME COURT] . Further, the reference to the Chartered Accountant's opinion in favour of the assessee made by the Tribunal also cannot be discarded. We do not find any assertion of the revenue at any stage of the proceedings that no such opinion existed. Penalty for breach of Section 54EC - HELD THAT:- Amount involved is extremely small and we therefore, do not entertain the question without going into merits thereof. We however record the confession for the assessee that the question whether investment under section 54EC can be total of ₹ 50 lakhs in all or would be capped to ₹ 50 lakhs in a assessment year, permitting similar such investment in the next year was not free from doubt. The assessee had no intention to breach this ceiling. - Decided in favour of assessee
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