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2010 (5) TMI 61 - HIGH COURT OF DELHIPenalty u/s 271(1)(c) – furnishing inaccurate particulars of income - Assessing Officer imposed penalty of Rs 4,61,913/- on the assessee for allegedly furnishing inaccurate particulars of income. - The assessee had received interest of Rs 18,62,538/- on Fixed Deposits and had also received certain other receipts totaling Rs 21,91,820/-.These were included in the business income of the assessee and were treated by the Assessing Officer as the assessee’s income from other sources. The eligible profits for computation of relief under Section 80HHD of the said Act were thereby reduced. The Assessing Officer computed the relief under Section 80HHD at Rs 42,90,282/- against the amount of Rs 53,92,895/- as claimed by the assessee. This resulted in excess amount of deduction on the part of the assessee under Section 80HHD at Rs 11,02,613/-. It was on the basis of this excess claim that the penalty of Rs 4,61,913/- was imposed on the assessee. Held that: The Tribunal took the view that the assessee did not furnish any inaccurate particulars of income nor did the assessee conceal any part of its income. The question with regard to the claim of deduction under Section 80HHD was, at that point of time, debatable. Consequently, the Tribunal held that this was not a case where imposition of penalty under Section 271(1)(c) of the said Act could be justified. – Order of ITAT confirmed.
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