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2020 (12) TMI 1082 - HC - Income TaxPenalty u/s 271(1)(c) - Debatable assessment - HELD THAT:- This Court is of the view that the ITAT was right in deleting the penalty levied under Section 271(1)(c) of the Act. It has to be noted that penalty proceedings are an outcome of assessment and if the assessment itself is debatable, the penalty proceedings cannot survive. Levy of penalty cannot be a matter of course, as sought to be contended by the Revenue. It can only be levied in cases where the concealment of income has been proven. If the quantum order itself has been challenged and this Court has framed substantial questions of law in the appeal preferred by the respondent-assessee, it shows that the alleged concealment is not final and the issue is disputable. Consequently, the penalty levied by the assessing officer cannot survive in such a case. This Court in CIT Vs. Liquid Investment Ltd [2010 (10) TMI 1021 - DELHI HIGH COURT] has upheld the deletion of the penalty on the same ground i.e. the fact that appeals were admitted proved that the issue was debatable - No question of law.
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