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2016 (6) TMI 797 - AT - Income TaxPenalty u/s 271(1)(c) - addition u/s 68 being sale proceeds of shares, as income from undisclosed sources - Held that:- The issue on hand is debatable, open and capable of having an alternate view as the same is held to be representing a substantial question of law by the Jurisdictional High Court at the time of admission of appeal. Accordingly, it is appropriate for us to hold, that the assessee was under a bona fide belief for staking its claim and in the presence of these factors, no penalty under section 271(1)(c ) is leviable. The Hon'ble Delhi High Court in the case of CIT vs. Liquid Investment Limited (2010 (10) TMI 1021 - DELHI HIGH COURT) has clearly held that where High Court has accepted substantial question of law u/s 260A, this itself shows that issue is debatable and in such a case no penalty was imposable u/s 271(1)(c) of the Income-tax Act, 1961. - Decided in favour of assessee
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