Mere disallowance does not automatically trigger Section 271(1)(c) penalty: ITAT Ahmedabad

Sureshkumar Prabhulal Thakkar Vs DCIT (ITAT Ahmedabad) AO Failed to Disprove Evidence- Penalty Not Automatic on Disallowance of Expense Claim- ITAT Ahmedabad Cancels 271(1)(c) Penalty – The appeal was filed by Assessee against the order of CIT(A), NFAC, confirming penalty u/s 271(1)(c). Assessee had filed return declaring income of Rs.34.40 lakh, including LTCG of Rs.35.59 lakh on sale of land. In assessment, AO disallowed Rs.7.96 lakh claimed towards cost of improvement & transfer expenses, holding that since Assessee was only 1/7th co-owner & no other co-owners claimed such expense...