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2016 (4) TMI 998 - ITAT MUMBAIPenalty u/s 271(1)(c) - AO recomputed the deduction u/s 80IB(10) - reduction in the value of stock-in-trade to the tune of 10% on the ground that the building constructed were held as stock-in-trade and were leased out during the year - Held that:- CIT(A) had dealt with this issue in great detail and rightly deleted the penalty by accepting the contention of the assessee who relying on the decision of the Hon’ble Supreme Court in the case of CIT vs. Reliance Petroproducts (2010 (3) TMI 80 - SUPREME COURT ). We also find that the ld. CIT(A) further found that the reduction in the value of stock-in-trade was tax neutral as ultimately in the year of sale of said stock in trade, the higher profit would be automatically accounted for and would be accruing to the assessee by claiming lower value of stock in trade. In the case of Reliance Petro products (supra), it has been held that mere making the claim which is not sustainable in law, itself would not amount to furnishing of inaccurate particulars of income. Thus we uphold the order of CIT(A) deleting the penalty levied by the AO by dismissing the appeal of the revenue. - Decided in favour of assessee
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