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| The Tax Publishers2021 TaxPub(DT) 4351 (Del-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
If the quantum order itself was challenged before High Court who framed substantial question of law in appeal, then it would show that the alleged concealment was not final and the issue was disputable and the penalty levied by AO in such cases cannot survive.
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Penalty under section 271(1)(c) - Leviability - Assessee challenged assessment order -
Aggrieved by the final assessment order, Assessee filed appeal before ITAT. ITAT deleted additions/disallowances to the extent of Rs. 3279.25 crores, additions /disallowances to the extent of Rs. 68.60 crores were set aside to the file of AO for reconsidering the matter in light of the directions in the order and confirmed the additions/disallowances to the extent of Rs. 4.86 crores. On the additions/disallowances confirmed by ITAT and some other additions/disallowances which were suo motu surrendered by the assessee during the assessment proceedings. AO vide penalty order passed under section 271(1)(c) of the Act levied the penalty. Held: Against the order of Tribunal whereby the additions have been upheld by Tribunal, assessee has challenged the order of Tribunal before the Delhi High Court and the Delhi High Court in ITA No. 668/2014 order dated 19-11-2015 has admitted the appeal of the assessee by holding that substantial question of law was involved on those issues. Assessee therefore submitted that when the High Court has admitted the appeal of the assessee by holding that substantial question of law was involved, it would indicate that the assessee's claim were debatable and the additions/disallowance that were sustained were on account of bona fide differences of opinion and therefore it does not attract the provisions of section 271(1)(c) of the Act. The quantum order has been challenged before the High Court and High Court has framed substantial question of law in the appeal then it would show that the alleged concealment is not final and the issue is disputable and the penalty levied by the assessing officer in such case cannot survive.
Followed:Pr. CIT (Central) - v. M/s. Harsh International Pvt. Ltd. (2021) 431 ITR 118 (Del) : 2021 TaxPub(DT) 0068 (Del-HC) Hero Motocorp Ltd v. Addl. CIT [ITA 668/2014, dt. 19-11-2015] Anil Chaturvedi , Member ( A ) And Kuldip Singh , Member ( J ).
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2008-09
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