Penalty not leviable for mere disallowance of claim made by Assessee

M/s. Cooperative Cane Development Union Ltd. Vs. DCIT (ITAT Delhi) The bona fide error or bonafide claim constitutes valid defence against the charge of concealment of particulars of income or furnishing of inaccurate particulars of income. The mere making of a claim which is not sustainable in law cannot amount to furnishing of inaccurate particulars regarding income of assessee. The assessee declared the interest received which was claimed exempt as well as explained the interest paid. Therefore, income of the assessee was found taxable of the difference in interest amount of Rs. 5,74,275. ...