No Penalty for Rejection of Bonafide Claim

Pr. CIT Vs Shamrao Vithal Co-Op Bank (Bombay High Court) The division bench of the Bombay High Court has held that penalty cannot be levied under the Income Tax merely on the ground that a deduction claim was rejected by the department. The assessee is a Co-operative Bank. For the relevant A.Y under consideration, the assessee had incurred expenditure for acquisition of three co-operative Banks. Claiming directives of RBI contained in its circular, the bank amortized such expenditure over a span of five years. While completing the assessment proceedings, the Assessing Officer observed that the...