Sec. 271(1)(c) Penalty not justified merely for disallowance of claim

Jain Studios Ltd. & Anr. Vs DCIT (ITAT Delhi)  Mere making of a claim which had not been accepted, would not per se tantamount to furnishing of inaccurate particulars to attract penalty proceedings under section 271(1)(c) of Income Tax Act, 1961. Bare perusal of explanation furnished by the assessee went to prove that it had come up with bona fide claim with no actual or conscious furnishing of inaccurate particulars, therefore, levy of penalty under section 271(1)(c) of Income Tax Act, 1961 was not justified. FULL TEXT OF THE ITAT JUDGMENT The appellant, M/s. Jain Studios Ltd. (herei...