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2017 (8) TMI 1127 - AT - Income TaxPenalty u/s 271(1)(c) - deemed dividend addition u/s 2(22)(e) - debate-able issue - advance of loan to shareholders - Held that:- the provisions envisaged by the legislature u/s 271(1)(c) of the Act has two limbs, both the limbs are independent to each other and any one of the ingredients may be the cause for imposition of the penalty u/s 271(1)(c) of the Act, in one limb, the concealment may exist whereas in another there may be furnishing of inaccurate particulars of income. The additions on the basis of which the penalty was levied by the AO u/s 271(1)(c) of the Act was deleted by the ld. CIT(A) and the ITAT upheld the order of the ld. CIT(A). Thereafter, the department preferred an appeal before the Hon’ble Delhi High court wherein the appeal was admitted and a substantial question of law was framed which was decided against the assessee and in favour of the department. Against the said order of the Hon’ble Jurisdictional High Court, the assessee filed SLP which was admitted by the Hon’ble Supreme Court [2012 (2) TMI 619 - SUPREME COURT] saying Pending appeal, there shall be stay as far as penalty or interest is concerned. In the present case, it is clear that the issue relating to the additions on the basis of which the impugned penalty was levied by the AO is highly debatable. In the present case also the issue relating to the additions on the basis of which the penalty u/s 271(1)(c) of the Act was levied by the Act was debatable. - Levy of penalty deleted - Decided in favour of assessee.
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