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2016 (12) TMI 1292 - ITAT MUMBAIPenalty u/s 271(1)(c) - disallowance of deduction claimed for exploration expenditure incurred in the business of prospecting u/s.42(1) - Held that:- Difference between the assessee and the Revenue is with regard to the scope of the expenditure envisaged in section 42(1) of the Act. The relevant discussion in the assessment order or even in the penalty order passed by Assessing Officer, does not reflect that the claim of the assessee was fanciful or was patently erroneous so as to suggest any concealment of income or furnishing in accurate particulars of income within the meaning of section 271(1)(c) of the Act. The mere claim made by the assessee which is found to be unsustainable by the Assessing Officer does not ipso-facto lead to a penalty under section 271(1)(c) of the Act as held by the Hon'ble Supreme Court in the case of CIT vs. Reliance Petroproducts Pvt. Ltd.(2010 (3) TMI 80 - SUPREME COURT ) . In our considered opinion in the present case the difference between the assessed and the reported income on the aforesaid aspect is based on varying perception of the scope of section 42(1) of the Act and it is not a case reflecting any concealment or furnishing of inaccurate particulars by the assessee within the meaning of section 271(1)(c) of the Act. - Decided in favour of assessee.
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