Penalty u/s 271(1)( c) justified in case of deliberate false claim of exemption in ROI

Brief of the case

Assesse’s claim for exemption u/s 10B was denied. A.O. also passed a penalty order u/s 271(1)(c) for raising a false claim for exemption. Tribunal found that assesse had not even challenged rejection of claim in appeal. Moreover, judgments relied upon by assesse for raising such a claim were found distinguished on facts. Tribunal, thus concluded that assesse deliberately furnished false particulars of income. Accordingly, impugned penalty order was confirmed.

Facts of the case

• The assessee claimed benefit u/s.10B on the interest income earned on deposits placed with the bank/s for fixed term/s (FDRs) and inter-corporate deposits (ICDs).

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