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2022 (3) TMI 842 - AT - Income TaxPenalty u/s 271(1)(c) - Disallowance u/s 43B - HELD THAT:- Facts on record clearly reveal that all material relating to the interest component was furnished before the departmental authority. In fact, Commissioner (Appeals) has found the interest on OD account from the profit and loss account of the assessee. Thus, in our considered opinion, the explanation of the assessee that it is a bona fide claim of deduction, appears to be reasonable. It is to be noted that penalty u/s 271(1)(c) of the Act is not automatic. If assessee offers reasonable explanation, then, penalty cannot be imposed. In the facts of the present appeal, in our considered opinion, the deduction claimed by the assessee is not due to any mala fide intention but on a bona fide belief. In any case of the matter, as held by the Hon'ble Supreme Court in case of CIT vs. Reliance Petro Products [2010 (3) TMI 19 - SUPREME COURT] disallowance of a deduction claimed by the assessee by itself cannot lead to furnishing of any inaccurate particulars of income - Decided in favour of assessee.
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