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2014 (9) TMI 652 - ITAT AHMEDABADPenalty u/s 271(1)(c) deleted – Inaccurate particulars furnished for bogus purchase expenses – Held that:- Penalty u/s 271(1)(c) levied by the AO was deleted by the CIT(A) – relying upon Commissioner of Income Tax – I Versus Prakash S. Vyas [2014 (7) TMI 89 - GUJARAT HIGH COURT] where the Hon’ble High Court has admitted appeal against disallowance finding a substantial question of law involved in the matter, the claim of the assessee for deduction cannot be treated as mala fide or frivolous so as to make him liable for penalty u/s 271(1)(c) of the Act - mere admission of an appeal by the High Court cannot without there being anything further, be an indication that the issue is debatable one so as to delete the penalty u/s 271(1)(c) of the Act even if there are independent grounds and reasons to believe that the assessee's case would fall under the mischief envisaged in the said Clause (c) of Sub-Section (1) of Section 271 of the Act - unless there is any indication in the order of admission passed by the HC simply because the Tax Appeal is admitted, would give rise to the presumption that the issue is debatable and that therefore, penalty should be deleted - the order of the CIT(A) deleting the penalty only on the ground that substantial question of law has been framed by the Hon’ble High Court in the quantum appeal is not sustainable - the assessee challenged the levy of penalty on other grounds also and it was not decided by the CIT(A) – thus, the issue of levy of penalty u/s 271(1)(c) is remitted back to the CIT(A) – Decided in favour of revenue.
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