Disallowance of claim of expenditure cannot be basis for levy of penalty u/s. 270A: ITAT Jaipur

Urmila Rajendra Mundra Vs ITO (ITAT Jaipur) ITAT Jaipur held that merely the claim of the assessee was not entertained it cannot be a reason automatically to levy the penalty for misreporting or under reporting of the income. Accordingly, levy of penalty under section 270A of the Income Tax Act set aside. Facts- Assessee has preferred the present appeal mainly contesting that CIT(A), NFAC, Delhi has wrongly confirmed the levy of penalty u/s 270A of Rs. 2,03,488/- considering disallowances of interest capitalized of Rs. 4,89,159/- for calculation of capital gain (index value of Rs. 4,19,720/-)...