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2017 (2) TMI 1081 - ITAT MUMBAIPenalty u/s 271(1)(c) - Disallowance u/s 14A r.w. Rule 8D - assessee while making alternative submission conceded the disallowance as the dividend income of the assessee falls under one head of income and the expenses claimed by the assessee were related with the another head of the income - Held that:- We have seen that the assessee has merely claimed the expenses which were not allowable under one head of the income. There is no concealment of income or furnishing of inaccurate particular. It is settled law that in all cases mere disallowance of claim of expenses would not automatically lead to levy of penalty u/s 271(1)(c) of the Act. We may also refer that penalty proceeding are distinct from assessment proceeding. We may note that assessee has made such a claim which was ultimately not allowed. The AO has not brought any new material which may suggest that assessee has concealed any part of his assessable income. The AO has not brought on record as to what facts were unearthed by him which may suggest that the assessee concealed its income. Thus, as per our considered opinion, there was no concealment of income on the part of assessee. Thus, the appeal of the assessee and the penalty levied by AO is deleted. - Decided in favour of assessee
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