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2021 (2) TMI 128 - ITAT PUNELevy of penalty u/s 271(1)(c) - denying the claim of deduction u/s 80IB(10) of Act on the ground that the area of the plot on which the housing project was taken up is less than one acre - HELD THAT:- It appears that the AO had concluded that the size of the land is less than one acre based on the entries in 7/12 extract. It is also a matter of fact that the actual area is more than one acre i.e., 4722 sq.mtrs, which is more than the area mentioned in 7/12 extract. Considering these facts, the Tribunal had allowed the appeal [2021 (2) TMI 80 - ITAT PUNE]and had clearly held the entries made in 7/12 extract are not conclusive and what is to be considered is the actual area of the plot and accordingly, allowed the appeal of the assessee in the quantum appeal. Thus, since the addition made in the assessment was deleted in the quantum appeal, no penalty can be levied. It is a case of mere disallowance of claim made which does not tantamount to furnishing of inaccurate particulars of income nor is it false claim, as the assessee had made a bonafide claim and contended vehemently the findings of the AO that the size of the land is less than one acre. Therefore, the ratio of the decision of Hon’ble Apex Court in the case of Reliance Petroproducts Ltd.[2010 (3) TMI 80 - SUPREME COURT] is squarely applicable to the facts in the present case. It is not a fit case for levy of penalty u/s 271(1)(c) of the Act for furnishing of inaccurate particulars of income - it is not a fit case for levy of penalty u/s 271(1)(c) of the Act for furnishing of inaccurate particulars of income. - Decided in favour of assessee.
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