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2014 (1) TMI 980 - ITAT MUMBAIPenalty u/s 271(1)(c) - Held that:- The assessee had claimed the depreciation on the ground of temporary suspension of the business whereas the AO disallowed the claim observing that the business was suspended since December 2000 on account of losses incurred and the same was not revived as on the date of assessment order - Though the depreciation claim on assets of the assessee had been disallowed and the said disallowance had been confirmed by the higher authorities, but that itself can not be a ground for mandatory levy of penalty - The levy of penalty is a penal action against the assessee for his wrongful act of furnishing of inaccurate particulars of income or for concealment of income - Every case of confirmation of disallowance cannot be regarded as a case of furnishing of inaccurate particulars of income or concealment of income - Following COMMISSIONER OF INCOME-TAX Versus RELIANCE PETROPRODUCTS PVT. LTD. [2010 (3) TMI 80 - SUPREME COURT] - Simply for the reason that the Assessing Officer did not find the claim of the assessee to be sustainable in law up to a certain extent, it can not be a case for penalty u/s.271(1)(c) - Decided in favour of assessee.
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