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2020 (9) TMI 462 - AT - Income TaxPenalty u/s 271 (1) ( C ) - deduction u/s 24 (a) was disallowed - CIT-A deleted the penalty on the above sum for the reason that the rental income is shown by the assessee, the tax deduction at source is allowed to the assessee, the remittance of the sum to the charitable trust is also demonstrated, therefore, the disallowance of the statutory deduction u/s 24 (a) is a simple disallowance and does not involve any element of concealment of income or furnishing of inaccurate particulars - HELD THAT:- Though DR could not point out the reason that mere disallowance of the statutory claim when the assessee has been taxed under the head income from house property will result into penalty u/s 271 (1) (C) - for the reason that the penalty notice does not show any of the twin charges, on which the penalty has been levied by the learned assessing officer, as none of them has been struck off, on this ground, we do not find any infirmity in the order of the learned Commissioner of is in deleting the penalty on above disallowance. Disallowance of provisions for gratuity u/s 43B - Commissioner - A deleted the penalty on the above sum holding that the assessee has furnished the details in the income tax return, in the books of account, in the work in progress - HELD THAT:- The penalty on this sum was deleted. DR could not show us any reason that penalty on the above sum is leviable. Further, it is also not free from doubt whether such disallowance can be made u/s 43B of the income tax act or not when the assessee itself is not claim the above deduction in the computation of total income. Merely because the disallowance has been confirmed by the higher forum, it cannot automatically result into penalty. Further for the reasons given by us, relying upon the decision of the jurisdictional High Court in case of principal Commissioner of income tax versus Sahara India life insurance Co Ltd [2019 (8) TMI 409 - DELHI HIGH COURT] we do not find any infirmity in the order of the learned some is CIT – A in deleting the penalty on the above disallowance. No infirmity in the order of the learned CIT – A in cancelling the penalty levied u/s 271 (1) (C) of the act. - Decided in favour of assessee.
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