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2020 (8) TMI 165 - AT - Income TaxPenalty u/s 271(1) - addition of wrong claim u/s 80IB made by assessee in the return & surrendered during scrutiny proceedings - whether the claim made by the assessee is a bonafied mistake or a deliberate attempt made to conceal the particulars of income within the meaning of section 271(1)(c) has to be examined? - HELD THAT:- On perusal of the reasons given by the assessee for making a claim of deduction u/s 80IB(4), we find that the assessee was prompted to go for making a claim as per the report of auditor given in Form 10CCB, which is in our considered view is a bonafied mistake and the same cannot be considered as a deliberate attempt made for concealment of particulars of income to levy penalty u/s 271(1)(c). We, further noted that in the case of CIT vs Reliance Petro chemicals products Pvt. Ltd. [2010 (3) TMI 80 - SUPREME COURT] has held that making a claim, which is not substantiated cannot be considered as deliberate attempt to concealment of particulars of income, which warrants levy of penalty u/s 271(1)(c) Similar view has been expressed of CIT vs Price Waterhouse Coopers [2012 (9) TMI 775 - SUPREME COURT] where the assessee has made a claim on the basis of tax audit report of auditor and the same has been found to be not allowed and the Ld. AO has made additions - mere making a claim, which is not substantiated that too on the basis of report of auditor cannot be considered as concealment of particulars of income. In this case, there is no doubt of whatsoever with regard to the claim of the assessee towards trading profit and such claim is solely based on the report of auditor in Form No. 10CCB. Claim made by the assessee towards deduction u/s 80IB(4) is a bonafied mistakes, for which the penalty provisions provided u/s 271(1)(c) cannot be invited. - Decided in favour of assessee.
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