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2022 (12) TMI 394 - AT - Income TaxPenalty u/s 271(1)(c) - expenditure which was claimed by the assessee as exceptional item in the profit & loss a/c - HELD THAT:- The penalty imposed by the AO and confirmed by the CIT(A) is not correct as further reason that the assessee has disclosed all the facts in the tax return filed by the assessee and thus all the facts were available before AO and nothing was concealed. Even if, the assessee has made a claim which is not correct or not as per provisions of the Act or which the AO considered to be not correct even then the penalty cannot be levied as the full facts were before the AO in the return of income. The facts of the assessee finds that in the case of CIT vs Reliance Petro Products (P) Ltd. [2010 (3) TMI 80 - SUPREME COURT] has held that making of claim which is not sustainable in law and claim made in the return cannot be held to be furnishing of inaccurate particulars of income, merely because the assessee claimed deduction interest expenditure which is not been accepted by the revenue and penalty cannot be levied u/s 271(1)(c). On the same analogy, we find that the facts of assessee’s case are quite similar. We, therefore, respectfully follow the same set aside the order of ld. CIT(A) - Appeal of the assessee is allowed.
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