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2018 (10) TMI 1019 - AT - Income TaxPenalty u/s 271(1)(c) - disallowance of deduction u/s.10B - furnishing inaccurate particulars of income - Held that:- The assessee during the assessment proceedings has furnished all the details with regard to the deduction claimed u/s 10B of the Act. Thus, there was neither any concealment of income nor furnished inaccurate particulars of income in the income tax return. Thus, there is no question of levying the penalty u/s 271(1)(c). We have heard the rival contentions and perused the materials available on record. The instant case relates to the excessive deduction claimed by the assessee u/s 10B of the Act. Accordingly, the penalty was levied by the AO on account of furnishing inaccurate particulars of income. There is no dispute that the deduction was claimed by the assessee u/s 10B of the Act on the basis of audit report obtained in Form 56G which is placed on record. Thus, in our considered view the assessee should not suffer on account of penalty by the mistake committed by the auditor. We note that the penalty cannot be levied if any error has been committed by the auditor by giving a certificate specifying the wrong amount of deduction u/s 10B of the Act. Thus, we direct the AO to delete the penalty levied by him u/s 271(1)(c). No reason to interfere in the order of Ld CIT(A). Hence, the ground of appeal of the Revenue is dismissed.
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