https://www.taxtmi.com/caselaws?id=119869 The Tribunal cancelled the penalty of Rs. 1,16,29,800 imposed under section 271(1)(c) of the Income-tax Act, finding that the assessee acted in bona fide belief and disclosed all material facts. The Tribunal determined that the mere disallowance of a deduction claim under section 80-IB(10) did not justify the penalty, as the issue involved genuine differences of opinion and complexities in tax law interpretation. The decision was limited to the penalty's validity, with the merits of the deduction claim pending in revision proceedings. The stay application for the outstanding demand was rendered infructuous. en-us Thu, 12 Oct 2006 00:00:00 +0530 Mon, 19 Feb 2024 12:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=119869 The Tribunal cancelled the penalty of Rs. 1,16,29,800 imposed under section 271(1)(c) of the Income-tax Act, finding that the assessee acted in bona fide belief and disclosed all material facts. The Tribunal determined that the mere disallowance of a deduction claim under section 80-IB(10) did not justify the penalty, as the issue involved genuine differences of opinion and complexities in tax law interpretation. The decision was limited to the penalty's validity, with the merits of the deduction claim pending in revision proceedings. The stay application for the outstanding demand was rendered infructuous. Case-Laws Income Tax Thu, 12 Oct 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=119869