https://www.taxtmi.com/caselaws?id=30344 The ITAT upheld the deletion of penalty imposed under Section 271(1)(c) of the Income Tax Act by the Commissioner of Income Tax (Appeals) for disallowance of business expenditure claimed by the assessee. The ITAT emphasized that disallowance of expenditure does not automatically justify penal action without evidence of willful omission. It found the revenue failed to prove willful omission or neglect by the assessee, affirming the Commissioner's decision. The High Court concurred, noting the legitimate basis for the expenditure claim and lack of evidence of intentional tax evasion, leading to the dismissal of the revenue's appeals. en-us Thu, 07 Feb 2008 00:00:00 +0530 Sat, 23 Aug 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=30344 The ITAT upheld the deletion of penalty imposed under Section 271(1)(c) of the Income Tax Act by the Commissioner of Income Tax (Appeals) for disallowance of business expenditure claimed by the assessee. The ITAT emphasized that disallowance of expenditure does not automatically justify penal action without evidence of willful omission. It found the revenue failed to prove willful omission or neglect by the assessee, affirming the Commissioner's decision. The High Court concurred, noting the legitimate basis for the expenditure claim and lack of evidence of intentional tax evasion, leading to the dismissal of the revenue's appeals. Case-Laws Income Tax Thu, 07 Feb 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=30344