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2019 (5) TMI 1325 - AT - Income TaxPenalty u/s 271(1)(c) - AO make addition of payment made towards sub–brokerage by treating it as bogus and not incurred for the purpose of business - Tribunal deleted 90% of addition and sustain 10 % on estimated basis - HELD THAT:- It is relevant to observe, against the aforesaid decision of the Tribunal, the Revenue went in appeal before the Hon'ble Jurisdictional High Court u/s 260A. While deciding the appeal of the Revenue, the Hon'ble Jurisdictional High Court not only sustained the decision of the Tribunal in allowing 90% of the sub–brokerage payment but has also observed that there is no dispute regarding the genuineness of expenditure and has held that disallowance was purely on estimate basis. Thus, when the genuineness of the payment is not doubted and 90% of the expenditure has been allowed, penalty cannot be imposed u/s 271(1)(c) on the disallowance of balance 10% made purely on estimate basis. - Decided against revenue.
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