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2022 (10) TMI 937 - ITAT AHMEDABADPenalty levied u/s. 271(1)(c) - mere treatment of an amount as revenue (by the AO) instead of capital (by the taxpayer) - HELD THAT:- Revenue should prove that the claim made was not sustainable in law and also the assessee had concealed the particulars of income. In order to expose the assessee to penalty, the Revenue should show that there was contumacious conduct on the part of the assessee in suppressing the income in the return. The rejection of such a claim by the Appellate Tribunal does not amount to furnishing inaccurate particulars of income, thereby levying penalty u/s. 271(1)(c) of the Act as held by the Hon’ble Supreme Court in the case of Reliance Petroproducts (P.) Ltd. [2010 (3) TMI 80 - SUPREME COURT] Since the quantum appeal of the assessee is now pending before the Hon’ble High Court, it is appropriate to rely upon the Hon’ble Delhi High Court judgment in the case of PCIT, Central-11, vs. Harsh International Pvt. Ltd. [2020 (12) TMI 1082 - DELHI HIGH COURT]. The Judicial discipline demand that until and unless the judgment of the Hon’ble Jurisdictional High Court is reversed. It has to be respected and followed by the Tribunal functioning under the jurisdiction of that Court. Penalty levied u/s. 271(1)(c) for furnishing inaccurate particulars of income is hereby deleted.
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