Allowing the appeal the Tribunal held that disallowances cannot automatically lead to penalty. The assessee had made full and true disclosure in its return of income and furnished the full particulars of income. No information given in the return was found to be incorrect. All the expenses were genuine business expenses, paid by account payee cheques, and were properly accounted for in the regular books of account. Therefore, penalty could not be levied. (AY.2013-14)
Ajanta Pharma Ltd. v. Dy. CIT (2020) 77 ITR 555 / 187 DTR 159/ 204 TTJ 341 (Mum.)(Trib.)
S. 271AAB : Penalty-Search initiated on or after Ist day of July 2012-Concealment–Search and seizure–Undisclosed income-Disallowances cannot automatically lead to penalty–levy of 10% penalty is held to be not valid. [S. 132, 271(1)(c)]