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2018 (1) TMI 1040 - ITAT HYDERABADLevy of penalty u/s. 271(1)(c) - Long Term Capital Gain exemption from computation under Section 115JB - mere making of a claim - Held that:- Assessee was on the bonafide impression that Long Term Capital Gain was also exempt from computation under Section 115JB as well, as there is no dispute that the Long Term Capital Gain was exempt from levy of income tax under the normal provisions, thus there can be a bonafide mistake. Moreover, as seen from the penalty order, AO himself stated that assessee has made a wrong claim. Making a claim which is not allowable under the provisions of the Act does not attract the provisions of penalty u/s. 271(1)(c), as it cannot be considered as either ‘concealment of income’ or ‘furnishing of inaccurate particulars’. See CIT Vs Reliance Petroproducts Limited (2010 (3) TMI 80 - SUPREME COURT) It is a mere claim of exemption which is allowed in the normal computation, but not allowable u/s. 115JB and there cannot be any penalty for a wrong claim. In view of that, we are of the opinion that the provisions of Section 271(1)(c) are not attracted. Accordingly, we cancel the penalty. - Decided in favour of assessee.
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