ITAT upheld the CIT(A)'s order deleting penalty u/s 271(1)(c)...

ITAT upheld the CIT(A)'s order deleting penalty u/s 271(1)(c) against the assessee. The tribunal found the depreciation claim was a clerical error without malafide intention to evade taxes. The error was rectified in subsequent assessment year and did not impact tax liability. Relying on Supreme Court precedent, the tribunal concluded that a non-sustainable claim does not automatically constitute furnishing inaccurate income particulars. Consequently, the penalty was deleted, affirming the lower appellate authority's reasoning that the assessee's action did not warrant punitive measures.