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2015 (1) TMI 734 - ITAT MUMBAIPenalty levied by the AO u/s 271(1)(c) - disallowance made u/s 94(7) - Held that:- In the present case, it is not the case of the revenue that the assessee has failed to furnish all particulars of income. As noticed earlier, the assessee has indicated in its return of income that it was conscious of the provisions of sec. 94(7) of the Act. The assessee had attached a note also in this regard expressing its view about the applicability of the provisions of sec. 94(7) of the Act. In the assessment proceedings, the assessee has contended that the amended provisions should not be applied on the transactions concluded prior to the date of receipt of assent of Hon’ble President of India. Thus, in our view, the assessee was under bona fide belief that the amended provisions will not be applicable for the transactions concluded atleast upto the date of receipt of assent of the Hon’ble President to Finance (No.2) Bill , 2004. In our view, the said belief cannot be altogether rejected, since the said claim of the assessee is a debatable one. Even otherwise, we are of the view that the decision of Hon’ble Supreme Court in the case of Reliance Petro Products (2010 (3) TMI 80 - SUPREME COURT ) supports the case of the assessee, i.e., a claim which is not sustainable in law by itself would not lead to furnishing of inaccurate particulars of income. Thus the penalty levied on the disallowance made u/s 94(7) of the Act is liable to be deleted. - Decided in favour of assessee.
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