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2019 (9) TMI 348 - AT - Income TaxLevy of penalty u/s 271(1)(c) - books of account as per section 145 rejected and calculated disallowance under section 40(a)(ia) of the Act for non-deduction of TDS u/s 195 - HELD THAT:- It is pertinent to observe that while passing assessment order Ld.AO initiated penalty proceedings without referring to any charge as to for “concealment of income” or “filing of inaccurate particulars of income”. Further Ld.AO subsequent to order passed by Ld. CIT (A) passes penalty order, wherein penalty has been levied for deliberateness of “tax evasion”, which in our considered opinion is not at all the requirement of Sec.271(1)(c ) of the IT Act. Be that as it may, it is observed that Hon’ble High Court for year under consideration admitted substantial questions of law by which addition itself becomes debatable. On perusal of decision relied upon by Ld.AR in case of CIT vs Ankita Electronics Pvt Ltd [2015 (3) TMI 1029 - KARNATAKA HIGH COURT] and CIT vs Dr Hirsha N. Biliangady [2015 (3) TMI 1146 - KARNATAKA HIGH COURT] additions in respect of which penalty was confirmed has been accepted by Hon’ble Karnataka High Court, leading to substantial question of law. Thus when Hon’ble High Court admitted substantial question of law on additions, it becomes apparent that issue is certainly debatable. In such circumstances penalty cannot be levied under section 271 (1) (c) of the Act. - Decided in favour of assessee.
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