https://www.taxtmi.com/caselaws?id=762126 The ITAT Mumbai held that penalty under section 271(1)(c) cannot be levied merely because disallowances were made under section 43B for expenses claimed by the assessee. The disallowance was not due to concealment of income but because certain expenditures are allowable only upon actual payment. The assessee had filed all relevant details and confirmations regarding expenditures and liability increases. The Tribunal emphasized that penalty levy is not a mechanical procedure and requires proper verification. Since the additions were technical disallowances rather than concealment, penalty was not justified. The assessee's appeal was allowed. en-us Mon, 14 Oct 2024 00:00:00 +0530 Mon, 25 Nov 2024 08:49:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762126 The ITAT Mumbai held that penalty under section 271(1)(c) cannot be levied merely because disallowances were made under section 43B for expenses claimed by the assessee. The disallowance was not due to concealment of income but because certain expenditures are allowable only upon actual payment. The assessee had filed all relevant details and confirmations regarding expenditures and liability increases. The Tribunal emphasized that penalty levy is not a mechanical procedure and requires proper verification. Since the additions were technical disallowances rather than concealment, penalty was not justified. The assessee's appeal was allowed. Case-Laws Income Tax Mon, 14 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762126