https://www.taxtmi.com/caselaws?id=754865 ITAT Indore allowed the appeal and deleted penalty u/s 271(1)(c) imposed on electricity expenses disallowance. The assessee claimed electricity costs for sorting machine operations but failed to provide supporting bills as electricity connection was in husband's name for his godown where machine operated. Though AO disallowed expenses for lack of evidence, ITAT held the claim was bona fide since sorting is essential business activity, machine existence was undisputed, and assessee provided reasonable explanation. Disallowance due to insufficient evidence doesn't constitute furnishing inaccurate particulars or concealment warranting penalty. en-us Wed, 26 Jun 2024 00:00:00 +0530 Mon, 01 Jul 2024 21:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754865 ITAT Indore allowed the appeal and deleted penalty u/s 271(1)(c) imposed on electricity expenses disallowance. The assessee claimed electricity costs for sorting machine operations but failed to provide supporting bills as electricity connection was in husband's name for his godown where machine operated. Though AO disallowed expenses for lack of evidence, ITAT held the claim was bona fide since sorting is essential business activity, machine existence was undisputed, and assessee provided reasonable explanation. Disallowance due to insufficient evidence doesn't constitute furnishing inaccurate particulars or concealment warranting penalty. Case-Laws Income Tax Wed, 26 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754865