Penalty not imposable for bonafide claims which gets disallowed

Penalty u/s 271(1)(c ) shall not be imposed if assessee has set off  loss against the amount of profit after claiming deduction under Section 80HHC of the said Act. In view of Supreme Court judgment in the case of IPCA Laboratory Ltd. v. DCIT : [2004] 266 ITR 521 (SC), wherein the Supreme Court held that the provisions of section 80AB had an overriding effect over all the other sections in Chapter VI-A including Section 80HHC. The decision in IPCA Laboratory Ltd (supra) came subsequent to the filing of the return. Therefore, it cannot be said that the claim made by the respondent /assessee wa...