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2017 (4) TMI 296 - AT - Income TaxLevy of penalty under section 271(1)(c) - disallowance of loss arising on account of assignment of bad debts - Held that:- Where the assessee had filed full and complete particulars in the audit report itself and had tried to justify the admissibility of the said expenditure being revenue, but merely because the said expenditure has not be allowed in the hands of assessee, does not warrant the levy of penalty under section 271(1)(c) of the Act It is not the case of Revenue that the details which were supplied by the assessee in the return of income, are not accurate, not exact or correct or not according to the truth or erroneous. In the present set of facts also, the assessee had furnished the particulars of its income and had also made a declaration with regard to its claim of expenditure which was found to be not admissible and the expenditure claimed was disallowed in the hands of assessee. However, such disallowance of expenses cannot tantamount to furnishing of inaccurate particulars of income. Accordingly, we hold so. In the absence of the same, no penalty under section 271(1)(c) of the Act could be levied. No penalty is leviable under section 271(1)(c) of the Act on the ground that the quantum appeal filed by the assessee is admitted by the Hon’ble High Court on substantial question of law. Since the appeal on substantial question of law is admitted and pending before the Hon’ble High Court, the issue is debatable and on disallowance of such debatable issue, there is no merit in levy of penalty under section 271(1)(c) of the Act. Accordingly, we delete penalty levied under section 271(1)(c) of the Act in respect of disallowance - Decided in favour of assessee
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