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2023 (8) TMI 441 - AT - Income TaxLevy of penalty u/s 271(1)(c) - disallowance on account of order u/s 92CA(3) by TPO for undercharging interest on foreign currency loan to AE by assessee company - HELD THAT:- Since the quantum addition/ disallowance has been deleted the penalty to this extent does not survive and, therefore, the findings of the CIT(A) cannot be faulted with. Disallowance being excess claim u/s. 35 (2AB) - We find that during the course of the assessment proceedings itself the assessee has intimated the claim of expenditure approved by DSIR - On identical set of facts this Tribunal in [2016 (3) TMI 921 - ITAT DELHI] has deleted the levy of penalty levied on similar excess claim u/s. 35 (2AB) of the Act. Claim of the assessee at the time of filing of the return was a bonafide claim supported by the relevant provisions of the law. As soon as a lesser claim was approved by the DSIR the assessee intimated the AO and because the return could not be revised accepted the disallowance made by the AO by not contesting the same in the appeal. Ratio laid down by the Hon’ble Supreme Court in the case of Reliance Petro Products [2010 (3) TMI 80 - SUPREME COURT] squarely apply. Decided against revenue.
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