https://www.taxtmi.com/caselaws?id=75987 Delhi HC reversed ITAT's penalty deletion under Section 271(1)(c). The assessee company claimed bona fide mistake in disallowing expenses, but the court found the claim was not only incorrect in law but also malafide and without basis. Despite being a large company with tax auditors, the assessee's explanation was rejected by AO and CIT(A). The court held that incorrect claims lacking bona fide basis attract penalty provisions, especially given limited scrutiny of returns. The HC confirmed the penalty, ruling in favor of revenue against the assessee. en-us Mon, 24 May 2010 00:00:00 +0530 Mon, 12 May 2025 09:51:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=75987 Delhi HC reversed ITAT's penalty deletion under Section 271(1)(c). The assessee company claimed bona fide mistake in disallowing expenses, but the court found the claim was not only incorrect in law but also malafide and without basis. Despite being a large company with tax auditors, the assessee's explanation was rejected by AO and CIT(A). The court held that incorrect claims lacking bona fide basis attract penalty provisions, especially given limited scrutiny of returns. The HC confirmed the penalty, ruling in favor of revenue against the assessee. Case-Laws Income Tax Mon, 24 May 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=75987