Dismissing the appeal of the revenue the Court held that ; Though the AO has rejected the revised return, mere making claim which is unsustainable in law will not amount to furnishing inadequate particulars ; what the law contemplates is making of a false claim or claim which is not bona fide. Deletion of penalty is held to be justified .
PCIT v. Mahima Udyog ( 2018( 2018) 303 CTR 633 /168 DTR 29( Uttarakhand) (HC)
S. 271(1)(c) : Penalty – Concealment -Disallowance of claim -Rejection of revised return-Mere making claim which is unsustainable in law will not amount to furnishing inadequate particulars ; what the law contemplates is making of a false claim or claim which is not bona fide – Deletion of penalty is held to be justified. [ S.80IC ]