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Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1994-95 - Making an incorrect claim would not tantamount to furnishing of inaccurate particulars unless it is established that the assessee had acted with a mala fide intention or had claimed deductions being aware of well settled legal position [In favour of assessee] Making an incorrect claim would not tantamount to furnishing of inaccurate particulars unless it was established that assessee had acted with a mala fide intention or had claimed deductions being aware of the well settled legal position The assessee had claimed deductions on account of set off of unabsorbed business losses against the income from the capital gains, which was held not to be mala fide. However, the Assessing Officer imposed penalty on the assessee. The Tribunal held that making an incorrect claim would not tantamount to furnishing of inaccurate particulars unless it was established that the assessee had acted with a mala fide intention or had claimed deductions being aware of the well settled legal position. The Tribunal had observed in plain words that the assessee had disclosed all the particulars along with the return of income and it was not a fit case for levy of penalty. The Tribunal deleted the penalty. Held that the appellant could not show that the above findings of the Tribunal were illegal or perverse in any manner so as to persuade this court to interfere therewith. Hence, the deletion of penalty was justified. CASE REVIEW Rubber Udyog Vikas (P.) Ltd. v. Asstt. CIT [2011] 10 ITR (Trib.) 418 (Delhi) affirmed. CASES REFERRED TO CIT v. Munish Iron Store [2003] 263 ITR 484 (Punj. & Har.), CIT v. Reliance Petroproducts (P.) Ltd. [2010] 322 ITR 158 (SC), Dilip N. Shroff v. Joint CIT [2007] 291 ITR 519 (SC), Rubber Udyog Vikas (P.) Ltd. v. Asstt. CIT [2011] 10 ITR (Trib.) 418 (Delhi) and Union of India v.Dharamendra Textile Processors [2008] 306 ITR 277 (SC). Ms. Urvashi Dhugga for the Appellant. JUDGMENT Ajay Kumar Mittal, J.-This appeal under section 260A of the Income-tax Act, 1961 (for short "the Act"), has been filed by the Revenue against the order dated March 31,…

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