Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 527 - ITAT MUMBAILevy penalty u/s 271(1)(c) - disallowance of software expense - Held that:- In order to attract the provision of section 271(1)(c) of the Income Tax Act, there has to be “concealment of particulars” of the income of the assessee” secondly, the assessee must have furnish “inaccurate particulars” of his income, in the present case both the elements are missing as no information given by the assessee in the return was found to be incorrect or inaccurate. It is submitted that mere making an incorrect claim in law cannot tantamount to furnishing inaccurate particulars. As per the facts of the present case the disallowance made by CIT(A) is on account of difference of opinion between the assessee and the revenue as to the category in which the concerned expenses fall which certainly is a debatable in nature . It is settled law that when the disallowance made by AO/ CIT(A) itself is debateable in nature, no penalty of concealment for such debatable issue can be levied. - Decided in favour of assessee
|