No Section 271(1)(c) Penalty on Unsustainable Claims

ACIT Vs Indian Drugs & Pharmaceuticals Limited (ITAT Delhi) The penalty order reveals that the impugned penalty has been imposed by the Ld. AO for the solitary reason that the assessee made claim for deduction of expenses which were not allowable. The assessee furnished explanation for claiming higher deduction of expenses in the revised computation. The assessee submitted that it filed its original return on estimate basis as the accounts were not finalized and were unaudited adding therein Rs. 70 crores on adhoc basis for various probable disallowances. After the accounts were finalized ...