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2022 (7) TMI 214 - AT - Income TaxPenalty u/s 271(1)(c) - additions/ disallowances made on account of corporate guarantee fee, interest on foreign currency, disallowance u/s. 35(2AB) of the Act and donation to SRF Vidyalaya - HELD THAT:- In so far as the addition on account of corporate guarantee fee and interest on foreign currency loans and advances are concerned the impugned addition have been deleted by this Tribunal - Since the addition have been deleted we do not find any justification in the levy of penalty u/s. 271 (1) (c) of the Act and the same has been rightly deleted by the CIT(A) and, therefore, no interference is called for. Disallowance u/s. 35 (2AB) - As claim of the assessee was bonafide the only point of concern was that the department of Scientific and Industrial Research vide letter dated 12.07.2012 has approved the sum of Rs.1282.46 lakhs including additional 50% of revenue expenditure of Rs.1023.53 lakhs whereas the assessee has claimed deduction of Rs.1305.26 lakhs which prompted the AO to make the impugned disallowance. In our humble opinion the assesee’s claim is being bonafide levy of penalty u/s. 271 (1) (c) of the Act is not justified in the light of the ratio laid-down by the Hon’ble Supreme Court in the case of Reliance Petro Products [2010 (3) TMI 80 - SUPREME COURT] We decline to interfere with the findings of the CIT(A). The appeal filed by the revenue is accordingly dismissed.
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