Penalty cannot be imposed without AO’s Finding on ‘Inaccurate Particulars’

CIT Vs. Mahanagar Telephone Nigam Ltd (Delhi High Court)– A.O. having failed to record a finding that the assessee had furnished inaccurate particulars, the imposition of penalty under Section 271(1)(c) of the I.T. Act was a complete non-starter. This finding of fact has been affirmed by the Tribunal and we find no reason to disagree with the same. A mere erroneous claim made by an assessee, though under a bonafide belief that, it was a claim which was maintainable in law, cannot with more, lead to an imposition of penalty. In the instant case it is quite evident that both claims were ma...