Mere denial of claim of deduction doesn’t attract penalty u/s 271(1)(c)

Nirma Limited Vs DCIT (ITAT Ahmedabad) ITAT Ahmedabad held that imposition of penalty under section 271(1)(c) of the Income Tax Act unjustified as denial of claim of deduction u/s 80HH/ 80IA doesn’t tantamount to concealment of income and/or furnishing of inaccurate particulars of income. Facts- Penalty under section 271(1)(c) of the Act was levied by AO for concealing/ furnishing inaccurate particulars of income to the tune of Rs.52,46,045/- which was confirmed by the ld.CIT(A) to the extent of Rs.47,55,054/- noting the fact that initial additions made by the AO on which penalty was levied ...