The ITAT set aside the penalty imposed under s.271(1)(c),...

The ITAT set aside the penalty imposed under s.271(1)(c), holding that recharacterisation of a loan as deemed dividend under s.2(22)(e) and a s.40A(3) disallowance did not amount to furnishing of inaccurate particulars where the relevant facts were disclosed in audited financials and during assessment proceedings and pre-existing judicial decisions supported the assessee's position. The Tribunal noted that reliance on authoritative decisions available before the assessment and penalty orders justified the assessee's stance, and that mere disallowance under s.40A(3) did not establish culpable inaccuracy. Penalty under s.271(1)(c) deleted and the assessee's appeal allowed.