TMI Blog2022 (6) TMI 668X X X X Extracts X X X X X X X X Extracts X X X X ..... plated under Section 271(1)(c) in respect of such addition. Thus, the imposition of penalty on such addition claimed in the books of account is not justified at the first instance. The action of the CIT(A) is accordingly reversed. Deduction under Section 80IC on certain other income which inter alia included profit on sale of asset - AO disallowed the claim of deduction under Section 80IC ter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion reduced on account of interpretative process cannot per se be equated with furnishing of inaccurate particulars of income. In the absence of any culpability, the imposition of penalty owing to denial of deduction on such interpretation on nicety of law does not warrant imposition of onerous penalty u/s 271(1)(c). The penalty imposed is thus cancelled.- Appeal of assessee allowed. - I.T.A. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n account of disallowance of part deduction 80-IC. 3. The assessee-company filed its return of income declaring total income at Rs.11,98,36,555/-. In the course of assessment, the Assessing Officer inter alia disallowed repair and maintenance expenses at Rs.1,44,794/- on account of charity and donation and Rs.65,782/- on account of part deduction in Section 80IC and imposed penalty thereon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80IC on certain other income which inter alia included profit on sale of asset. The Assessing Officer disallowed the claim of deduction under Section 80IC terming it to be incidental income and thus cannot be said to be derived from manufacture or produce of any article or thing. For holding so, the Assessing Officer relied upon the judgment rendered by the Hon ble Supreme Court in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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