ITAT Ahmedabad: No Penalty for Mere Wrong Claim – U/s 271(1)(c) Deleted

Usha Dilipbhai Shah Vs ITO (ITAT Ahmedabad) In this case, the ITAT Ahmedabad held that penalty u/s 271(1)(c) cannot be levied merely because the assessee made an incorrect claim, particularly when all facts were duly disclosed. The Tribunal noted that: The addition was made treating loan as deemed dividend u/s 2(22)(e), However, the assessee had already disclosed the transaction in audited books, The difference arose only due to interpretation/treatment of income, and not due to concealment. The ITAT held that: Wrong claim ≠ concealment or furnishing inaccurate particulars, When details a...