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2022 (1) TMI 1208 - AT - Income TaxPenalty u/s. 271(1)(c) - disallowance of expenses - Proof of bonafied error - as per DR non-striking off the irrelevant portion in the notice u/s. 274 r.w.s. 271(1)(c) of the Act dated 03.03.2015 does not create any ambiguity as the assessee was well aware that the proceedings have been initiated for furnishing inaccurate particulars of income - HELD THAT:- It is not disputed that the assessee is eligible for the claim of the expenses but it was disallowed to the extent of ₹ 91,96,966/- out of the total claim of the assessee. We have also considered that the Ld. CIT(A) has observed that the assessee realized the mistake and filed revised statement of income at para 5.2 in quantum appeal. Therefore, the claim made by the assessee was not wrongfully but was on account of bona fide error to the extent for which the amount is added in the total income. This error in making the claim of expenses cannot be equated with the furnishing of inaccurate particular of income. Considering, the above finding and observations made by the lower authorities and following the decision of Hon’ble Supreme Court in the case of CIT Vs. Reliance Petro Products Ltd. [2010 (3) TMI 80 - SUPREME COURT] - thus we hold that there cannot be a penalty where there was bond fide error in the claim. We hold that there was wrong claim in the return of income filed by the assessee which cannot partake the characteristics of furnishing in-accurate particular of income. Therefore, we delete the levy of penalty considering it as bona fide error. Hence, the ground of appeal of the assessee is allowed.
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