Assessee wrote off capital work in progress as revenue loss. Assessee has disclosed all particulars of his income. AO disallowed claim without holding it be bogus or false. Hence, genuineness of the loss is not a question under dispute. Assessee cannot be penalized for making a claim which in itself is unsustainable in law. Legislature does not intend to penalize every person whose claim is disallowed. Relied, CIT v. Reliance Petroproducts (2010) 322 ITR 158 (SC) and dismissed the appeal of the revenue. (AY. 2009-10)
PCIT v. Samtel India Ltd. (2018) 168 DTR 322 (Delhi)(HC)
S. 271(1)(c) : Penalty–Concealment–Writing off capital work in progress- Penalty not sustainable on disallowance of assessee’s claim of loss–Legislature does not intend to penalize every person whose claim is disallowed.