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2015 (11) TMI 1 - ITAT MUMBAIPenalty under section 271(1)(c) - addition on 'deemed dividend’ under section 2(22)(e) - Held that:- It is a case where the assessee failed to substantiate its stand about the perception of viewing a particular transaction. A difference in perception about a transaction, in our view, would not constitute furnishing of inaccurate particulars of income within the meaning of section 271(1)(c) of the Act. Notably, a perusal of the assessment order passed by the Assessing Officer under section 143(3) of the Act on 5/11/2003 clearly suggests that the Assessing Officer has perceived the said transaction to be falling within the scope of the deeming provisions of section 2(22)(e) based on the particulars furnished by the assessee. It is not a case where assessee can be said to have concealed or furnished any wrong or false particulars about the transaction. Hon’ble Supreme Court in the case of CIT vs. Reliance Petroproducts Pvt. Ltd.(2010 (3) TMI 80 - SUPREME COURT) has held that unless there is a finding that any of the details or particulars supplied by the assessee in its return are found to be incorrect or erroneous or false, it would not invite the penalty under section 271(1)(c) of the Act merely because the claim made in the return of income has been found to be unsustainable. In the present case, factually speaking, the situation is of a varying perception of the nature of transaction which has resulted in application of section 2(22)(e) of the Act, thereby resulting in a difference between returned and the assessed income. Having regard to the entire conspectus of facts and circumstances of the case, in our view it is not a fit case for levy of penalty under section 271(1)(c) of the Act. Accordingly, we set aside the order of the CIT(A) and direct the Assessing Officer to delete the penalty imposed under section 271(1)(c) - Decided in favour of assessee.
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