https://www.taxtmi.com/caselaws?id=237619 Penalty under Section 271(1)(c) could not be sustained merely because a deduction claim was disallowed on merits; Explanation 1 requires the Revenue to show that the assessee furnished false particulars, advanced a false or not bona fide explanation, or failed to substantiate the claim despite full disclosure of material facts. Here, the assessee had disclosed the relevant facts and the claim rested on a legal contention, with no finding of mala fides. The penalty was therefore unjustified, and the Tribunal's deletion of the penalty was upheld. en-us Wed, 31 Jul 2013 00:00:00 +0530 Sat, 07 Jun 2014 11:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=237619 Penalty under Section 271(1)(c) could not be sustained merely because a deduction claim was disallowed on merits; Explanation 1 requires the Revenue to show that the assessee furnished false particulars, advanced a false or not bona fide explanation, or failed to substantiate the claim despite full disclosure of material facts. Here, the assessee had disclosed the relevant facts and the claim rested on a legal contention, with no finding of mala fides. The penalty was therefore unjustified, and the Tribunal's deletion of the penalty was upheld. Case-Laws Income Tax Wed, 31 Jul 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=237619