No penalty merely for making a wrong claim due to wrong interpretation of section 54EC

P.S. Jayaraman Vs ACIT (ITAT Chennai)

Ld. CIT(A) concurred with assessee’s submissions that deduction u/s 54F was solely due to difference in interpretations of the provisions and therefore, the penalty was not to be levied on this count. However, the provisions of Sec. 54EC were clear that the investment in a financial year was not to exceed Rs.50 Lacs and therefore, it could not be said that the assessee’s interpretation of provisions of Sec. 54EC was bona-fide. Therefore, the penalty against this addition as well as o

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