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2022 (7) TMI 813 - ITAT PUNEPenalty u/s 271(1)(c) - disallowance of claim for deduction u/s 36(1)(viia) - As per DR assessee bank made wrong claim deliberately knowing that it was not entitled for deduction u/s 36(1)(viia) for the assessment year prior to A.Y. 2007-08 making assessee clearly guilty of furnishing of inaccurate particulars of income - HELD THAT:- On perusal of the assessment order, it would reveal that the claim made for deduction u/s 36(1)(viia) was disallowed by the AO on the ground that co-operative banks were entitled to claim deduction only from assessment year 2007-08 and not for years prior to assessment year 2007-08. Thus, it is a case of mere disallowance of claim under particular section of the Act, there is no finding by the AO, as to what particulars filed by the assessee and found to be inaccurate. It is settled position of law that mere disallowance of claim on legal ground does not entail levy of penalty under the provisions of section 271(1)(c) of the Act as laid down by the Hon'ble Supreme Court in the case of CIT vs. Reliance Petroproduct (P) Ltd.[2010 (3) TMI 80 - SUPREME COURT] - Decided in favour of assessee.
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