|The Tax Publishers2021 TaxPub(DT) 0068 (Del-HC) : (2021) 431 ITR 0118
INCOME TAX ACT, 1961
Where High Court framed substantial questions of law in the appeal preferred by assessee against quantum addition, the issue was disputable and no penalty could be levied under section 271(1)(c) as regards thereto.
Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Debatable issue -
AO rejected assessee's books under section 145(3) and made addition by estimating profit. Also, AO levied penalty under section 271(1)(c) as regards said addition. Assessee challenged penalty levied by AO.Held: Quantum order itself had been challenged and High Court framed substantial questions of law in the appeal preferred by assessee. It showed that issue was disputable. In such situation, no penalty could be sustained under section 271(1)(c).
Followed:CIT v. Liquid Investment Ltd, ITA 240/2009 : 2013 TaxPub(DT) 1375 (Del-HC), CIT v. H.B. Leasing & Finance Co. Ltd. ITA. No. 1612/2010 : 2011 TaxPub(DT) 1522 (Del-HC) and CIT v. Thomson Press India Ltd. ITA 426,440/2013].
FAVOUR : In assessee's favour.
A.Y. : 2004-05 & 2005-06
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