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2019 (3) TMI 736 - ITAT DELHIPenalty u/s 271(1)(c) - disallowance of payment made to employees under voluntary separation scheme (VSS) - only 1/5th of such expenditure is allowable in current year - existence of two views - AO is not sure whether the penalty is levied for concealment of income or furnishing of the inaccurate particulars of income - HELD THAT:- There are 2 views on the allowability of the above sum on which penalty has been levied. We also noted that the AO is also not sure whether the penalty is levied for furnishing of inaccurate particulars of income or concealment of income. In view of the appreciation of the complete facts, order of the coordinate bench in case of the assessee for earlier years on the quantum proceedings as well as on the penalty proceedings [2015 (10) TMI 2239 - ITAT DELHI]& [2013 (12) TMI 297 - ITAT DELHI], we are of the opinion that on the above disallowance penalty cannot be levied as there are conceivably 2 opinions on the same set of facts. CIT appeal has deleted the penalty primarily on this reason. On reading the penalty order itself it is found that the AO is not sure whether the penalty is levied for concealment of income or furnishing of the inaccurate particulars of income. Therefore, on this ground also the penalty is not sustainable. Accordingly we confirm the order of the learned CIT – A deleting the penalty on account of payment made to employees under voluntary separation scheme - Decided in favour of assessee.
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