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2020 (12) TMI 549 - AT - Income TaxLevying penalty u/s. 221(1) - entitled for deduction u/s 80P(2)(a)(i) denied - HELD THAT:- AR demonstrated the copy of income tax return to substantiate the claim. Assessment order was passed u/s 143(3) of the Act disallowing the claim of deduction u/sec 80P - On appeal the CIT(A) has allowed the assessee’s claim. Even otherwise, when the quantum addition has been deleted by the appellate authority, penalty on such addition is not sustainable. On perusal of the facts, we found that the assessee has filed the return of income disclosing total income as Rs. Nil and is also evident from page 1 of the assessment order. When the assessee has filed the return of income with Rs. Nil. Income, there is no question of payment self assessment tax. The assessee has bought these facts to the knowledge of the higher authorities but the CIT(A) has confirmed the order of levy of penalty. We considered the facts, submissions and provisions of law and set aside the order of the CIT(A) and direct the Assessing officer to delete the penalty and allow the grounds of appeal of the assessee.
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