Section 271 of Income tax Act, 1961— The only issue raised by the assessee is that the learned CIT (A) erred in confirming the penalty levied by the AO for Rs. 1,28,631/- under the provisions of section 271(1)(c) of the Act.

As per the AO, the assessee was not entitled for the deduction of guesthouse expenses which were claimed by it in the income tax return.

Held that— we are of the view that once the assessee has furnished all the particulars of expenses which were correct but wrongly claimed as deduction, does not attract the penalty. In view of the above, we hold that the assessee has made the wrong claim for the guest house expenses.

Therefore in our considered view, the penalty levied u/s 271(1)(c) of the Act is not justifiable in the given facts and circumstances.[ATUL LTD. VERSUS DY. CIT CIRCLE-1 (1) (1) AHMEDABAD][2019] 20 ITCD Online (8) [ITAT AHMEDABAD]