Section 271(1)(c) Penalty Not Automatic for Wrong Claims; Requires Proof of Lack of Bona Fides

DCIT Vs Sarva Haryana Gramin Bank (ITAT Delhi) Introduction: The Income Tax Appellate Tribunal (ITAT) Delhi recently issued an order in the case of DCIT vs. Sarva Haryana Gramin Bank concerning a penalty imposed under Section 271(1)(c) of the Income Tax Act, 1961. This article provides an in-depth analysis of the case and the reasoning behind the ITAT’s decision. Subheading 1: Background of the Case: Sarva Haryana Gramin Bank, the assessee, was subjected to a penalty under Section 271(1)(c) of the Income Tax Act for the assessment year 2015-16. The penalty was imposed by the Assessing Of...