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2019 (6) TMI 1217 - AT - Income TaxPenalty u/s. 271(1)(c) - claim of deduction u/s 80IB(10) - whether the claim made by the assessee in the return of income was on bonafide consideration or not? - HELD THAT:- Assessee had shifted its unit from one place to another and that 80% of the cost of plant and machinery on the new factory was by way of acquiring new plant and machinery and only less than 20% of cost was towards transferring plant and machinery of the unit. The assessee was under the impression that it was entitled to benefit under section 80IA and it also obtained professional advise in this regard. The claim of the assessee for deduction under section 80IA came to be rejected in the quantum assessment proceedings. In the penalty proceedings, Tribunal noted that there was no suppression of facts or misrepresentation of facts by the assessee even when the claim was denied in the quantum assessment proceedings. It deleted the penalty imposed u/s 271(1)(c) which was affirmed in the case of Petels Engineers Limited [2013 (11) TMI 1374 - BOMBAY HIGH COURT] specifically noted that the claim of the assessee under section 80IA was made under a bonafide belief and therefore, penalty under section 271(1)(c) was not sustainable. In our considered view, the fact situation before us is quite similar to the fact situation before the Hon’ble Bombay High Court in the case of Petels Engineers Limited (supra) and, therefore, levy of penalty in the instant case is not justified on this count too. We hold so. - Decided in favour of assessee.
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