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2024 (3) TMI 1207 - HC - Income TaxPenalty u/s. 271(1)(c) - addition on account of disallowance of claim of deduction u/s. 36(i)(viii) - ITAT deleted addition holding that the variation in the deduction u/s. 36(1)(viii) was due to the change in the business profit and it cannot be said that assessee has furnished inaccurate particulars of income - It is department’s case that only because assessee has offered income and not claimed deductions in the return of income would not absolve assessee from the liability of Section 271(1)(c) HELD THAT:- TAT, in our view, correctly held that provisions of Section 271(1)(c) of the Act are not attracted. The ITAT was of the view and rightly so that assessee had made a bona fide claim under Section 36(1)(viii) as such deductions claimed is linked to the business profit. Only because there was variance in the deductions allowable due to change in determination of business profit, it cannot be said that assessee has furnished inaccurate particulars of income or concealed inaccurate particulars of income. As held by the Apex Court in Commissioner of Income Tax Vs. Reliance Petro Products Pvt Ltd. [2010 (3) TMI 80 - SUPREME COURT] if we accept the contention of revenue, then in case of every return where the claim sum is not accepted by the AO for any reason, assessee will invite penalty u/s 271(1)(c). A mere making of the claim which is not sustainable in law by itself, will not amount to furnishing inaccurate particulars regarding the income of assessee, such claim made in the return cannot amount to be inaccurate particulars. Decided in favour of assessee.
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