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2016 (4) TMI 810 - AT - Income TaxPenalty u/s. 271(1)(c) - disallowance of capital loss, pertaining to receipt arising out of sale of research and development of capital assets - Held that:- On this issue the Hon'ble Bombay High Court, in quantum, has admitted the substantial question of law as noted above. In view of these facts, we find that the issue is squarely covered by the decision of the jurisdictional High Court in assessee's own case and also of Hon'ble Delhi High Court in the case of Liquid Investment and Trading Co. [2010 (10) TMI 1021 - DELHI HIGH COURT] wherein it is held that whenever the assessee had preferred appeal in Hon'ble High Court under section 260A of the Act, which has been admitted and substantial question of law frames, that itself shows that the issue is debatable and for that reason the penalty under section 271(1)(c) of the Act cannot be levied. We are of the view that Hon'ble Jurisdictional High Court has clearly laid down the principle that once Hon'ble High Court admits the substantial question of law in quantum appeal of the assessee, that itself shows that the issue is debatable and for that reason penalty u/s. 271(1)(c) of the Act cannot be levied. - Decided in favour of assessee.
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