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2016 (3) TMI 422 - ITAT DELHIPenalty u/s 271 (l)(c) - disallowance u/s 35ABB - Held that:- In this case it is merely the claim made was unsuccessful before two authorities but none of the authorities have held that the claim of the assessee not at all sustainable. Merely because the deduction claim was negative by the appellate authorities assessee cannot be subjected to penalty by holding that assessee has deliberately furnished inaccurate particulars of Income. In this case AO has held because the claim of the assessee was not allowed u/s 35ABB of the act assessee has deliberately furnished inaccurate particulars of income and penalty u/s 271(1) (c) was levied. We are of the view the claim made by the assessee was highly debatable and on such claims being not allowed, it does not amount to furnishing inaccurate particulars of Income. Therefore we confirm the order of CIT (A) in deleting the penalty u/s 271(1) (c) of the act in all the three appeals. - Decided in favour of assessee
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