No Penalty on Voluntary Section 43B Disallowance Enhancement

CIT Vs Valley Iron & Steel Co. Ltd. (Delhi High Court) In a recent judgment, the Delhi High Court has upheld the decision of the Income Tax Appellate Tribunal (ITAT), which had set aside the penalty imposed on Valley Iron & Steel Co. under Section 271(1)(c) of the Income Tax Act, 1961. The penalty had been imposed due to disallowance under Section 43B of the Act, which the company had voluntarily enhanced. This case is a cornerstone regarding voluntary disallowance enhancement under Section 43B of the Income Tax Act, 1961. Valley Iron & Steel Co. had suo motu increased their disall...