Penalty- sec. 271(1)(c ) – when two views are possible penalty cannot be imposed

In the case of: ITO Vs MAHAVIR CYCLE INDUSTRIES, Decided by: ITAT, CHANDIGARH, Decided on 24th September, 2009 Gist of decision: No penalty is imposable in respect of vexed legal issues which are debatable or on which two views/opinions are possible. For imposing penalty under s. 271(1)(c), the twin conditions of furnishing of inaccurate particulars or concealment of income has to be satisfied. Since the claim was made on the advice of an outside expert (being the auditor/ chartered accountant) and there being no mala fides, the same would not result in invoking of s. 271(1)(c). Even otherwise...