https://www.taxtmi.com/caselaws?id=469654 A bona fide deduction claim, made with full disclosure of material facts, does not attract penalty under section 271(1)(c) merely because the claim is later disallowed in assessment. The assessee had consistently claimed the deduction in earlier years, relied on a contractual clause, and disclosed the relevant facts in the return. On those facts, the explanation was accepted as bona fide and not as concealment or furnishing of inaccurate particulars. The penalty was therefore not sustainable, and the deletion of penalty was upheld. en-us Mon, 13 Jan 2020 00:00:00 +0530 Fri, 26 Jun 2026 15:31:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469654 A bona fide deduction claim, made with full disclosure of material facts, does not attract penalty under section 271(1)(c) merely because the claim is later disallowed in assessment. The assessee had consistently claimed the deduction in earlier years, relied on a contractual clause, and disclosed the relevant facts in the return. On those facts, the explanation was accepted as bona fide and not as concealment or furnishing of inaccurate particulars. The penalty was therefore not sustainable, and the deletion of penalty was upheld. Case-Laws Income Tax Mon, 13 Jan 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469654