Making incorrect claim in law would not by itself make assessee liable to penalty U/s. 271(1)(c)

CIT Vs L & T Finance Ltd. (Bombay High Court) The claim made by the respondent assessee was bona fide and not in the face of a statutory provision or any binding decision. In fact, the issue raised herein stands covered in favour of the respondent assessee by the decision of the Apex Court in Reliance Petroproducts Pvt. Ltd. (supra) where it has been observed that making of incorrect claim in law would not by itself amount to concealment of income or giving inaccurate particulars of income. The words concealment or giving inaccurate particulars of income have to be read strictly before the...