No penalty can be levied on disallowance u/s 43B if such disallowance is disclosed in Tax Audit Report:

AO levied penalty on disallowance made u/s43B in respect of interest to bank which had been debited to the books of accounts but not paid before the due date. Hon’ble ITAT observed that the disallowance u/s43B was duly disclosed in the Tax Audit Report filed along with the return of income. However, while computing the total income, the same was not disallowed. AO disallowed the same on a technical count that such interest was not paid before due date. It was held that no penalty can be levied on such disallowance since the said disallowance was made on account of a technical default and not on account of the claim being bogus in nature.

[M/s. Dabhoi Cotton Ginning and Pressing Factory vs. ACIT – ITA No.2146/Ahd/2012]