Mere non-allowability of claim not sufficient to impose penalty U/s. 271(1)(c)

Advocate Akhilesh Kumar Sah Merely non-allowability of claim by Revenue authorities is not a valid ground for imposition of penalty U/s. 271(1)(c) Penalty under section 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’) has remained a controversial issue. In an appeal before Ahmedabad ITAT, DCIT vs. Parinay Organizers Pvt. Ltd.[ ITA No. 3040/Ahd/2013,04.01.2017], for the AY 2007-08, one of the grounds raised was that whether on the facts of the circumstances of the case, the CIT(A) was justified in deleting the penalty levied by the AO on account of dis allowanc...