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2017 (4) TMI 625 - ITAT MUMBAILevy of penalty u/s. 271(1)(C) - addition was made on disputed point of share of profit exempt in the hand of partner u/s. 10(2A) - Held that:- Addition has been made due to the reason that assessee has claimed exemption for the entire share of income of the partnership form. However, the revenue has found that the act only postulates exemption of the share of profit of the firm. Hence, assessee’s claim of exemption qua the rental income of the firm was denied. In this factual scenario we are of the considered opinion that assessee can be considered to be under a bona fide belief that the entire income from the firm is exempt. Such a belief of the assessee cannot be held to be contumacious warranting levy of penalty u/s. 271 (1) C. See Hindustan Steel Ltd. vs. State of Orissa [1969 (8) TMI 31 - SUPREME Court] - Decided in favour of assessee.
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