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2016 (4) TMI 116 - ITAT MUMBAIPenalty u/s 271(1)(C) - disallowance of expenses - Held that:- After hearing counsels from both the sides and considering the nature of expenses disallowed by the AO which substantially allowed in the quantum appeal by the Tribunal. We are of the view that these were bonafide claim of the assessee and were incurred or provided by considering the same to be admissible under the law. The salary of the partners was provided under the expert views however wrongly calculated whereas the amount incurred in respect of foreign tour expenses and subscription and membership were fully and exclusively incurred for the business and is supported by bills and vouchers. This can at the most be regarded a case of difference of opinions where out of huge disallowance a small fraction had survived till the final disposal of the quantum appeal. The case of the assesee find strong support from the decision of the Apex Court in the case of (i) Reliance Petroproducts (P.) Ltd. (2010 (3) TMI 80 - SUPREME COURT) the Hon’ble Supreme Court has held, where there is no finding that any details supplied by the assessee in its return are found to be incorrect or erroneous or false there is no question of inviting the penalty under section 271(1)(c). A mere making of a claim, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee. - Decided in favour of assessee
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