No penalty u/s 271(1)(c) as mere claim isn’t furnishing inaccurate income particulars

ADIT Vs Fidelity Management & Research Co. (ITAT Mumbai) Conclusion: Penalty under section 271(1)(c) was not leviable as  AO had not demonstrated any falsehood in the particulars provided by assessee. Mere making a claim that was not legally sustainable did not constitute furnishing inaccurate particulars of income by assessee. Held: Assessee was registered as trusts and tax residents in foreign countries, had initially filed their income tax returns in India under the category of “Capital Gains” based on the income earned from the sale of securities. These assessees, sub-accounts of ...