Assessee had claimed foreign exchange fluctuation loss under head finance charges of profit and loss account .  During scrutiny proceedings Assessing Officer held that under provision of section 43A foreign exchange fluctuation loss was to be allowed on payment basis and was to be reduced/increased from corresponding cost of relevant plant and machinery .  Assessee had admitted that due to bona fide error it wrongly claimed foreign exchange rate difference as an expense and after accepting said mistake it claimed depreciation on increased cost of plant and machinery, qua which foreign currency fluctuation loss had been incurred . The Assessing Officer disallowed depreciation on account of increase in cost of plant and machinery by amount of foreign exchange fluctuation of as per provision of section 43A read with section 32(1)(ii) & (iia) . The Assessimg Officer  levied penalty under section 271(1)(c) on account of wrong claim or incorrect computation made by assessee in statement of income .CIT( A) deleted the penalty . On appeal Tribunal affirmed the order of the Tribunal . On appeal by Revenue the Court held that  since assessee could not have gained anything by claiming foreign currency fluctuation loss as deductible expenditure, as it would have only added to existing burgeoning losses and once error was pointed out by Assessing Officer, assessee made a course correction before assessment order was passed . Order of the Tribunal is affirmed,  on the ground that merely making the wrong claim of deduction, penalty cannot be levied.(AY. 2009-10)