Section 271(1)(c) Penalty not leviable merely for making a unsustainable claim: ITAT Ahmedabad

Swaminarayan Co-op. Bank Ltd. Vs ACIT (ITAT Ahmedabad) ITAT Ahmedabad held that merely making a claim that is not sustainable does not amount to furnishing inaccurate particulars of income. Accordingly, penalty u/s. 271(1)(c) of the Income Tax Act not justified. Facts- The Assessee is a Co-operative Bank stated to be in liquidation. The RBI vide its order cancelled the license granted to the bank to carry on banking business in India. The assessee filed its Income Tax Return for AY 2010-11 on 07/10/2010, declaring income of Rs.1,21,94,779/- under the head of “income from business or prof...