Incorrect MAT credit claim did not justify penalty absent concealment or inaccurate particulars under income-tax penalty provisions.

Penalty under section 271(1)(c) was held unsustainable where the assessee had made only an inadvertent wrong claim of MAT credit under section 115JAA. The document notes that such a mistaken credit claim did not amount to concealment of income or furnishing inaccurate particulars, because MAT credit represents tax already paid and is not income for penalty purposes. Relying on a coordinate bench view, the penalty was deleted.

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Issues: Whether penalty under section 271(1)(c) of the Income-tax Act, 1961 was leviable on the assessee for an inadvertent wrong claim of MAT credit under section 115JAA of the Income-tax Act, 1961.

Analysis: The assessee had only wrongly claimed MAT credit, which did not affect the computation of income in the sense contemplated by penalty provisions. Penalty under section 271(1)(c) is attracted only where there is concealment of income or furnishing of inaccurate particulars of income. MAT credit represents tax already paid and is not income for the purpose of penalty under that provision. Following the coordinate bench view relied upon, the mistaken MAT credit claim could not sustain penalty.

Conclusion: The levy of penalty under section 271(1)(c) was not sustainable and was deleted.

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