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2017 (1) TMI 1414 - HC - Income TaxPenalty under Section 271(1)(C) - deduction claimed under Section 80(1)(a)(4) - Held that:- Bombay High Court in the case of Nayan Builders and Developers Pvt. Ltd. Vs. The Taxing Authorities [2010 (9) TMI 1004 - BOMBAY HIGH COURT] concurrent finding's are recorded by the Commissioner (Appeal) and the Tribunal, they came to the conclusion that when an appeal involving a substantial question of law was pending consideration before the High Court, the addition became a debatable one and when the addition was debatable and subjudice before the Appellate Authority, penalty under Section 271(1)(c) could not be levied as the admission of appeal and the substantial question of law framed credence to the bonafide of the assessee to say that there was no deliberate concealment. Accordingly appeals filed by the Revenue were dismissed and the orders passed by the Commissioner, Income Tax Appeal, Bhopal, was upheld. The findings recorded by the Commissioner, Income Tax Appeal was to the extent that as the question of deduction was pending consideration in the appellate forum, therefore, penalty imposed should be canceled. We find that the aforesaid view taken by the Tribunal, to say that till decision on the appeal by the High Court the bonofide of the assessee in claiming the deduction cannot be disputed, the Commissioner, Income Tax Appeals and the Tribunal have not committed any error and in dismissing the appeal of revenue on such consideration, no error has been committed nor any substantial question of law arises warranting consideration.
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