Mere deduction disallowance not attracts Section 271(1)(c) Penalty: Madras HC

CIT Vs The Cuddalore District Central Co-operative Bank Ltd (Madras High Court) The substantial question of law  framed by the Madras High Court was whether penalty u/s 271(1)(c) cannot be levied on the assessee, even though Assessee had claimed deductions u/s 36(1)(viia) among others which were not applicable to co-operative banks. Assessee, a co-operative bank, had claimed deductions u/s 36(1)(viia), among others. AO imposed a penalty u/s 271(1)(c) for furnishing inaccurate particulars of income. CIT(A) deleted the penalty & the ITAT upheld the deletion.  Revenue appealed to the High C...