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2020 (12) TMI 521 - AT - Income TaxPenalty u/s. 271(1)(c) - assessee sold certain land and declared long term capital gain on sale thereof which as per AO should have been offered as "Business income" instead of long term capital gain - HELD THAT:- It is a case of difference of opinion between the assessee and the AO on the facts already disclosed by the assessee. Merely because the AO treated the amount of income already offered differently from the one portrayed by the assessee, cannot in our considered opinion be a cause for imposing penalty u/s. 271(1)(c) - The Hon'ble Supreme Court in CIT Vs. Reliance Petro products [2010 (3) TMI 80 - SUPREME COURT] has held that no penalty should be imposed when the assessee adopts a bona fide view and has declared all the necessary particulars concerning the income in dispute. Disallowance of Foreign tour and travelling expenses - relatives of the directors also joined in the foreign tours. This was followed by the penalty - HELD THAT:- As assessee incurred foreign tour expenses for conducting meetings with cement dealers of India Cement Ltd. and Visaka Industries Ltd., for which it was acting as C & F agent. These expenses included some amount spent on minor sons and daughters of the directors. CIT(A) has rightly relied on ACIT Vs. TRB Exports P. Ltd. [2010 (2) TMI 881 - ITAT, CHANDIGARH] of the impugned order, in which the Tribunal deleted the penalty under similar circumstances. No contrary precedent has been brought on record by the ld. DR. We, therefore, uphold the deletion of penalty. - Decided against revenue.
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