Shanti Prime Publication Pvt. Ltd.
Sec. 271(1)(c), 260A of Income-tax Act, 1961 – Penalty – The core issue in the appeal is sustaining by the lower appellate authorities the imposition of penalty of Rs. 22,08,860 under s. 271(1)(c) of the Act by the AO on account of disallowance of Rs. 62,47,460 claimed as a deduction under s. 36(i)(vii) of the Act on account of bad debt and subsequently claimed as a deduction under s. 37 of the Act as expenditure expended wholly and exclusively for the purpose of business. High Court Allowed the appeal of the assessee recording its findings that ”it is quite evident that assessee had declared the full facts; the full factual matrix or facts were before the AO while passing the assessment order. It is another matter that the claim based on such facts was found to be inadmissible. This is not the same thing as furnishing inaccurate particulars of income as contemplated under s. 271(1)(c) of the Act“.—VENTURA TEXTILES LTD. vs. CIT. 26 ITCD Online 038 (BOM)