Penalty cannot be levied where a bonafide claim of assessee was rejected

M/s. Advance Power Display Systems Ltd. Vs DCIT (ITAT Mumbai) As per record, we observe that all the facts were disclosed and the claim was made for deduction of travelling expenses. As per record the assessee has made a bonafide claim. The AO as well as CIT(A) have not challenged the genuineness / bonafides of the expenditure so incurred. The claim of the assessee is also supported by various decisions and documentary evidences placed on the record. Thus, penalty cannot be levied where a bonafide claim of the assessee was rejected by the tax department. FULL TEXT OF THE ITAT ORDER IS AS FOLLO...