TMI Blog2019 (1) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... with the order of the CIT(A) in deleting the penalty levied by the Assessing Officer under section 271(1)(c) - Decided against revenue. - ITA NO. 812/Chd/2018 - - - Dated:- 18-12-2018 - Sh. Sanjay Garg, JM And Dr. B.R.R. Kumar, AM For the Assessee : Shri. Parikshit Aggarwal For the Revenue : Shri. Manjit Singh ORDER PER DR. B.R.R. KUMAR, A.M: The present appeal has been filed by the Revenue against the order of the Ld. CIT(A)-1, Chandigarh dt. 22/03/2018. 2. In the present appeal Revenue has raised the following effective grounds: 2. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the penalty of ₹ 27,28,890/- on the confirmed addition on account of restricting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee once again made substantial expansion and started claiming deduction @100% from 6th year onwards u/s 80IC of the Act. The AO did not allow the assessee the 100% claim of deduction u/s 80IC and restricted the claim from 6th year onwards to 25%. The stand taken by the AO as confirmed in 1st and 2nd appeal. And the penalty proceedings were initiated against the assessee. The AO imposed penalty by making the following observation: The assessee's arguments on the quantum addition made in the assessment order are not relevant at this juncture. The issue to be decided in this penalty proceeding is not whether the AO was right in making the addition. Rather the issue is whether penalty is leviable on the assessee for an incorrect c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been reversed by the order of the Hon ble Supreme Court. The assessee has been found to have declared all the details in his return of income while claiming the exemption. Hence in accordance with explanation 1(B) to section 271(1)(c), since the action of the assessee in claiming the exemption can be considered as a bonafide belief that the assessee is rightly eligible for claim of exemption and hence no penalty can be levied under section 271(1)(c). Keeping in view the totality of the facts and circumstances and the provisions of the Act we hereby decline to interfere with the order of the Ld. CIT(A) in deleting the penalty levied by the Assessing Officer under section 271(1)(c) of the Income Tax Act,1961. 7. As a result, the appeal o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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