Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (5) TMI 1219 - ITAT DELHIPenalty u/s 271(1)(c) - debatable issue arises - partial income not offered to tax - assessee earned revenues from two streams i.e. web hosting and domain registration charges and offered revenue from web hosting services only to tax in the return filed - assessee did not offer to tax its income from domain registration services for the reason that it was under a bonafide belief that this income is not chargeable to tax under the provisions of the Act - HELD THAT:- As said income has been held to be taxable as “royalty” by the appellate authorities including the Tribunal in the quantum appeal of the assessee before the Hon’ble Delhi High Court, the Hon’ble Court has framed a substantial question of law - We are, therefore, of the view that the issue involved in the present appeals is a debatable issue and the position in law is not yet settled. The impugned penalty in both the AYs is therefore not exigible. CIT(A) has rightly deleted the penalty. Accordingly, we reject the appeals of the Revenue.
|