https://www.taxtmi.com/caselaws?id=756923 ITAT Mumbai held that penalty u/s 271(1)(c) was not imposable where assessee claimed excess deduction u/s 10B. The assessee furnished all relevant facts and detailed explanations regarding manufacturing divisions and expenditure bifurcation. Revenue failed to prove the explanation was false. Though AO reworked the quantum using different arithmetic, the claim was allowable in principle. The amount of tax sought to be evaded was indeterminable. Assessee's decision not to appeal the reduction did not indicate lack of bona fides. CIT(A)'s deletion of penalty was upheld. en-us Thu, 08 Aug 2024 00:00:00 +0530 Mon, 12 Aug 2024 08:25:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756923 ITAT Mumbai held that penalty u/s 271(1)(c) was not imposable where assessee claimed excess deduction u/s 10B. The assessee furnished all relevant facts and detailed explanations regarding manufacturing divisions and expenditure bifurcation. Revenue failed to prove the explanation was false. Though AO reworked the quantum using different arithmetic, the claim was allowable in principle. The amount of tax sought to be evaded was indeterminable. Assessee's decision not to appeal the reduction did not indicate lack of bona fides. CIT(A)'s deletion of penalty was upheld. Case-Laws Income Tax Thu, 08 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756923