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2016 (5) TMI 56 - ITAT MUMBAILevy of penalty under section 271 (1)(c) - claim of losses - Held that:- On perusal of the assessment order dated February 28, 2006, apparently, the assessee claimed losses with regard to the incomplete work which has not been allowed by the Assessing Officer and the said losses having been added to the income of the assessee. In our view, it is not a case of furnishing inaccurate particulars of income. Making incorrect claim, if any, does not amount to concealment of particulars because no information given by the assessee in its return of income is found to be incorrect. In this regard, we draw the support from the decision of the hon'ble Supreme Court in the case of CIT v. Reliance Petroproducts P. Ltd. [2010 (3) TMI 80 - SUPREME COURT ]. In effect, we are of the view that the Assessing Officer was not justified in levying penalty on the amount disallowed since the said claim is supported by Accounting Standard-7 issued by the Institute of Chartered Accountants of India. Accordingly, we set aside the order of the learned Commissioner of Income-tax (Appeals) and direct the Assessing Officer to delete the penalty. - Decided in favour of assessee
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