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2017 (3) TMI 810 - ITAT MUMBAIPenalty u/s 271(1)(c) - payment under the head ‘management service charges to shareholders' treated it as capital expenditure - Held that:- As per the decision of Reliance Petroproducts (P) Ltd. ( 2010 (3) TMI 80 - SUPREME COURT) we find that for penalty for concealment of income if the assessee has made a claim of expenditure which was not accepted or was not acceptable to revenue by disallow not attract the penalty u/s 271(1)(c) of the Act for imposing the penalty there has to be concealment of particulars of income of the assessee secondly assessee must for furnish inaccurate particulars of this income. It is admitted fact that no information given in the return of assessee was found to be incorrect or inaccurate. The statement given by the assessee was not found to be factually incorrect hence prima facie assessee could not be held guilty for furnishing inaccurate particulars. Therefore, in this case the claim of the assessee was partly allowed by the CIT(A) and Tribunal has submitted the finding of CIT(A). Therefore, we are of the view that CIT(A) has rightly justified in following the decision of Hon'ble Supreme Court. Whenever there is a debatable issue the penalty cannot be levied. - Decided in favour of assessee.
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