The assessee claimed deduction u/s. 35D amounting to 4.9 lakhs which was disallowed by the AO and penalty proceedings u/s. 271(1)(c) were also initiated. The Tribunal held that when the assessee has declared an income of 12.54 crores, there could not be any mala-fide intention at the end of the assessee to make an erroneous claim of such a small amount against such huge amount of reported income and the incorrect claim must have been made under some human error. As assessee has disclosed all the facts and also assessee did not challenge the addition after the decision of CIT(A). Thus, considering the above penalty cannot be levied under Section 271(1)(c) of the Act.  (AY. 2013-14)