Mere Disallowance of Interest Claim Doesn’t Warrant Penalty u/s 271(1)(c)

Ideal Energy Projects Limited. Vs DCIT (ITAT Mumbai) Mumbai ITAT has deleted penalty levied u/s 271(1)(c) holding that mere making of a claim which is ultimately disallowed does not amount to furnishing of inaccurate particulars or concealment of income. Assessee, engaged in generation of power through a thermal project, had filed return for AY 2012-13 declaring income of ₹6.10 lakh. During reassessment proceedings u/s 147, AO disallowed interest expenditure of ₹18.32 lakh claimed u/s 57 against interest income earned on short-term parking of borrowed funds. AO held that the expenditure wa...