ITAT allowed the assessee's appeal and deleted penalty levied...

ITAT allowed the assessee's appeal and deleted penalty levied u/s 271(1)(c) on all three issues. For expenditure on increase in authorised share capital, the Tribunal held that the disallowance arose from a capital-versus-revenue classification dispute, evidencing only a bona fide legal claim rather than concealment or furnishing of inaccurate particulars. For foreign exchange loss, the AO's adjustment was treated as a mere timing difference due to allowance by way of depreciation, again ruling out concealment. Regarding addition based on reconciliation with Form 26AS for interest adjusted against electricity bills, ITAT held that the discrepancy was minor, arose only on reconciliation, and did not constitute concealment or inaccuracy, and therefore penalty was unsustainable.

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