https://www.taxtmi.com/caselaws?id=177943 The ITAT Mumbai canceled the penalty imposed under section 271(1)(c) on the Assessee for disallowed club membership fee and foreign travel expenses. The tribunal considered the Assessee's bona fide belief in the claims, supported by legal precedents, and overturned the penalty upheld by the CIT(A). The tribunal emphasized that the mere disallowance of expenses does not automatically warrant a penalty, especially when the expenses were disclosed in accounts and had a potential business connection. As a result, the Assessee's appeal was allowed, and the penalty was deemed unwarranted. en-us Tue, 17 Sep 2013 00:00:00 +0530 Tue, 15 Nov 2016 11:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=177943 The ITAT Mumbai canceled the penalty imposed under section 271(1)(c) on the Assessee for disallowed club membership fee and foreign travel expenses. The tribunal considered the Assessee's bona fide belief in the claims, supported by legal precedents, and overturned the penalty upheld by the CIT(A). The tribunal emphasized that the mere disallowance of expenses does not automatically warrant a penalty, especially when the expenses were disclosed in accounts and had a potential business connection. As a result, the Assessee's appeal was allowed, and the penalty was deemed unwarranted. Case-Laws Income Tax Tue, 17 Sep 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=177943