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2017 (5) TMI 533 - AT - Income TaxPenalty u/s 271(1)(c) - deduction of 80-IB was denied on ‘other income’ - mandatory notice u/s 274 - Held that:- AO duly initiated the penalty proceedings in the quantum assessment and levied the penalty after issuance of the mandatory notice u/s 274. Further, the defect, if any, found in the standard printed proforma of notice u/s 274, stood cured by the provisions of Section 292B and do not invalidate the penalty proceedings. This point is further fortified by the fact that the assessee actively contested the penalty proceedings without an iota of doubt in his mind as to the ground for which he was being penalized. Therefore, the legal grounds raised by the Ld. AR stands rejected. It is to be noted that the assessee claimed 80IB deduction towards certain items and the Tribunal uphold the major claim of the assessee which proves the point that the assessee made a claim which was bona-fide and tenable in law. Therefore, the assessee made a legally valid claim, which was accepted to a major extent. In view of the same, we are of the considered opinion that the assessee do not deserves to be saddled with the impugned penalty particularly when it derived benefit only to the extent of 30%, being deduction u/s 80-IB. Therefore, by deleting the same, we allow the assessee’s appeal.
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