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2016 (6) TMI 934 - ITAT DELHIPenalty under section 271(1)(c) - excess deduction claimed under section 80-IB - bonafide mistake - Held that:- We find from the facts of the case that the Auditor computed deduction @ 100% in respect of the two units in reference and the assessee claimed the same deduction in the return of income filed. According to us, it is a very much likelihood that a normal person will claim the deduction in the return of income what has been computed by the Auditor, who has been authorized by the Act to submit a audit report in form No. 10 CCB in respect of the claim of deduction. In the circumstances, it cannot be said that there was a malafide intention behind the claim of excess deduction and it occurred due to the wrong claim computed by the Auditor. On perusal of the assessment order, we find that the Assessing Officer has mentioned only the letter dated 01/12/2006 submitted by the assessee on 04/12/2006 revising its claim of deduction under section 80-IB of the Act and accordingly allowed the claim at the rate of 30% and nowhere held that the mistake was pointed out by the Assessing Officer to the assessee. When the assessee itself noticed the mistake and came forward and offered the income for taxation, the assessee cannot be held in default for furnishing inaccurate particulars. Thus we are of the opinion that the excess claim under section 80-IB of the Act made by the assessee was on the basis of the bonafide mistake of the Auditor and the assessee cannot be held for furnishing inaccurate particulars of income and, accordingly, the penalty levied under section 271(1)(c) of the Act on the incorrect claim of deduction under section 80-IB is deleted - Decided in favour of assessee Penalty levied on disallowance of deduction under section 80-IB on account of higher allocation of head office/common expenses - Held that:- We find that facts of allocation of common expenses are identical to the facts of the case of Dharmpal Premchand Ltd (2010 (9) TMI 155 - DELHI HIGH COURT ), thus respectfully following the ratio of the said decision wherein held that merely because the assessee had claimed the expenditure, which claim was not accepted or was not acceptable to the revenue, that by itself would not, in our opinion, attract the penalty under section 271 (1)(c)- Decided against revenue Levy of penalty on unexplained cash credit under section 68 - Held that:- In the case in hand, the assessee has failed to prove the identity and creditworthiness of the creditor as well as genuineness of the transaction. In view of the facts of the case, the assessee is liable for furnishing inaccurate particulars of income in respect of the issue in dispute and accordingly we uphold the penalty levied in respect of disallowance of interest of ₹ 19,200/- paid in respect of the loan taken from Mr. Ravi Kapoor which has been held as unexplained cash credit under section 68 of the Act in the assessment year 2001- 02. - Decided against assessee
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