Mere erroneous claim is no ground for levying penalty

Mere erroneous claim in the absence of any concealment or furnishing of inaccurate particulars, is no ground for levying penalty, especially when there is nothing on record to show that the explanation offered by the assessee was not bona fide or any material particulars were concealed or furnished inaccurate .

In these circumstances, we have no hesitation in observing that no penalty is exigible in relation to claim for deduction of excess depreciation and interest on amount borrowed for building which was incomplete. Therefore, we hold that penalty is not imposable in this case and action of authorities below in imposing/confirming the penalty u/s 271(1)(c) of the Act is neither proper nor justified.

INCOME TAX APPELLATE TRIBUNAL, DELHI

ITA No.5023/Del./2011 – (Assessment Year: 2005-06)

M/s Lala Harbhagwan Dass Memorial &

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