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2019 (7) TMI 699 - AT - Income TaxPenalty u/s 271(1)(c) - disallowance of deduction u/s 80IA(4) - deduction was disallowed to the assessee on the ground that its industrial undertaking was not approved by the CBDT - HELD THAT:- It appears that the assessee was prima facie of the view that its scheme would be approved and it will be entitled for deduction u/s 80IA(4). When the assessment proceedings were going on, its proposal was pending before the CBDT. This fact was in the knowledge of the department. As far as disallowance of the deduction claimed by the assessee in the quantum proceeding is concerned, since the assessee failed to fulfill the requisite condition that deduction has to be disallowed, but for the purpose of penalty, we have to ascertain whether a deliberate effort was made by the assessee for withholding such information or furnishing inaccurate particulars, which would lead to concealment of income. To our mind, the assessee has made a claim anticipating sanction of scheme by the CBDT and it has disclosed this fact during the course of assessment proceedings. It does not deserve to be visited with penalty in the above facts and circumstances. Therefore, we allow all three appeals of the assessee and delete the impugned penalty. - Decided in favour of assessee.
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