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2023 (7) TMI 732 - AT - Income TaxPenalty u/s 271(1)(c) - difference between contract receipt as per books of accounts and as per Form No.26AS statement - HELD THAT:- Such mistake was a bonafide mistake due to volume of contract receipts from various sites and from various parties certain receipts were not taken into account by the assessee. As relying upon the decision of CIT vs. Reliance Petroproducts (P) Ltd. [2010 (3) TMI 80 - SUPREME COURT] wherein it is held that making of incorrect claim in law cannot tantamount to furnishing of inaccurate particulars or concealment of income. Therefore, the penalty levied under the same does not sustain. Penalty in respect of disallowance u/s 40A(3) for Vehicle Expenses, the same cannot be said as concealment of income as the assessee has genuinely claimed the vehicle expenses and, therefore, the penalty in respect of this item does not sustain. Penalty in respect of disallowance u/s 40A(3) for cash payment for purchase of Gold Ornaments, the assessee has genuinely claimed the said expenditure and, therefore, it cannot be treated as concealment of income or furnishing of inaccurate particulars of income. This penalty also does not sustain. Disallowance u/s 36(1)(va) for delay in depositing employees Provident Fund, the same does not sustain as the issue at the time of assessment proceedings was a debatable issue and certain decisions of Hon’ble High Courts were in favour of the assessee. Therefore, this cannot be treated as concealment of income or furnishing of inaccurate particulars of income. The penalty on this disallowance also does not sustain. Appeal of the assessee is allowed.
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