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2019 (10) TMI 147 - AT - Income TaxPenalty u/s 271(1)(c) - addition by changing the Most Appropriate Method (MAM) from TNMM to CUP by the TPO - whether the assessee has concealed particulars of income or has furnished inaccurate particulars of such income during assessment proceedings? - HELD THAT:- It is settled principle of law that when substantial question of law has been framed by the Hon’ble High Court in the appeal filed by the assessee challenging the addition confirmed by the Tribunal, the issue become debatable and no penalty in such circumstances can be levied. Hon’ble Delhi High Court in case of CIT vs. Liquid Investment & Trading Co. [2010 (10) TMI 1021 - DELHI HIGH COURT] confirmed the order passed by the Tribunal setting aside the penalty confirmed by the ld. CIT (A) u/s 271(1)(c) on the ground that the issue has become debatable - We are of the considered view that the penalty levied by the AO and confirmed by the ld. CIT (A) for AYs 2007-08 & 2008-09 is not sustainable in the eyes of law, hence ordered to be deleted. Consequently, appeals filed by the assessee are allowed.
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