The assessee has  not disallowed the unpaid interest under S. 43B of the Act . In response to penalty notice the assessee submitted that  the it had returned a loss and had substantial carry forward losses also and consequently, the assessee had no benefit, interest or intention in making an unsupportable claim to enhance the loss. However the AO levied  the penalty .On appeal the  CIT (A) Deleted the penalty , which was affirmed by the Appellate Tribunal  on the ground that the omission to make suo motu disallowance under section 43B(e) was an inadvertent error and not with an intention to understate the income. On appeal by revenue dismissing the appeal the Court held that the conduct of the assessee established that the omission to make suo motu disallowance under section 43B(e) was an inadvertent error and not with an intention to understate its income by furnishing inaccurate particulars and could not be stated to be a contumacious conduct on the part of the assessee with an intention to understate its income.  ( MAK DATA P. LTD. v. CIT( 2013) 358 ITR 593 distinguished., followed  Price Waterhouse Coopers Pvt. Ltd. v. CIT ( 2012) 348 ITR 306 (SC)  ( AY. 2012-13)