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2018 (3) TMI 1700 - ITAT DELHIPenalty u/s 271 (1)(c) - Held that:- We find that it is a established position of law that penalty under Section 271 (1)(c) of the Act cannot be imposed in respect of a debatable issue. This view is supported by the decision in the case of CIT vs. H.B. Leasing and Finance C.O. Limited (2011 (2) TMI 434 - DELHI HIGH COURT) wherein it was held that on a debatable issue, no penalty under Section 271 (1)(c) was leviable. The issue involved is yet to be resolved by the Hon'ble Supreme Court and as the issue was admitted by the High Court as involving substantial questions of law which is beyond any shadow of doubt that the addition in the instant case was made in respect of an issue which is highly debatable. Therefore, we are of the considered view that a penalty u/s 271 (1)(c) is not exigible in the instant case. - Decided in favour of assessee.
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