The Tribunal held that the mere disallowance or disagreement of a claim could not be the basis for levy of penalty and the addition made in the assessment order by the Assessing Officer could not be a gateway for automatic levy of penalty. The penalty could not be automatic. The claim of the assessee was in consideration of the financial statements and the assessee adopted one of the possible views that the business loss could be set off against the income from other sources. The assessee had made a claim under the bona fide belief that it was allowable under the law. The penalty was not sustainable. (AY.2005-06)