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2023 (5) TMI 1223 - AT - Income TaxPenalty imposed u/s. 271(1)(c) - delay in compliance with Regulation 8(3) of SAST Regulations, 1997 - amount paid to SEBI - HELD THAT:- In any case of the matter, whether the payment made to SEBI for violation of certain SEBI Regulations is on account of any offense or is prohibited by law, as per the language of Explanation 1 to section 37 of the Act, in our view, is a highly debatable issue as there are judicial precedents holding that penalty paid for delay in various obligations to SEBI/Stock Exchange/RBI does not amount to infringement/infraction of any law. Therefore, merely because assessee accepted the disallowance, it will not lead to the conclusion that the assessee has furnished inaccurate particulars of income. Penalty imposed u/s. 271(1)(c) in the facts of the present appeal is unsustainable. Accordingly, we delete the penalty imposed. Appeal of assessee allowed.
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