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2019 (1) TMI 857 - AT - Income TaxPenalty u/s 271(1)(c) - fees paid by the assessee to SEBI disallowed u/s 37(1) - Held that:- For AY 2009-10, wherein the tribunal held that the aforesaid payment of ₹ 2,05,00,000/- paid by the assessee to SEBI under the consent order is not infraction of law and is not hit by Explanation 1 to section 37(1) and the said expenses were held to be an allowable business expenditure. Order of the tribunal was later rectified by an order dated 18.12.2017 passed in miscellaneous application. Once the whole basis of addition itself as made by the AO in quantum has been deleted by the tribunal and expenses were held to be business, we do not find any reason and merit in the penalty being levied by the AO u/s 271(1)(c) on this ground and which was later confirmed by learned CIT(A) on the aforesaid amount of ₹ 2,05,00,000/-. We have also observed that CIT(A) by following the aforesaid order of tribunal against quantum assessment , correctly deleted the penalty. - Revenue fails in this appeal.
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