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2017 (12) TMI 595 - AT - Income TaxPenalty u/s 271(1)(c) - assessee is not entitled to seek deduction u/s 10B and for want of meeting this requirement the claim of the assessee becomes a wrong claim - Held that:- It is an admitted fact that the moment the notice was issued calling upon the assessee to explain why the deduction u/s 10B should not be disallowed, the assessee filed a return of income withdrawing the claim for deduction u/s 10B of the Act. In the circumstances, we find that the Ld.CIT (A) is justified in his view that the issue whether claimed u/s 10B is a deduction or exemption is a debatable issue and on this aspect the reasoning given by the Ld.CIT (A) in paragraph no. 3 is impacable. See CIT vs. Reliance Petro Products Pvt. Ltd. (2010 (3) TMI 80 - SUPREME COURT) as held that disallowance of a claim for deduction will not automatically lead to the levy of penalty unless there is concealment of income or furnishing of inaccurate particulars. We are agreeing with the findings of the Ld. CIT (A) that by reason a bona fide legal claim in the return of income even if the same is ultimately found to be not acceptable, it would be said that income has been concealed or inaccurate particulars of income were furnished, and consequently, the assessee cannot be penalized. We, therefore, while upholding the order of the Ld. CIT (A) dismiss the grounds of appeal. - Decided in favour of assessee.
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