Mere admission of Appeal by High Court sufficient to cancel penalty U/s. 271(1)(c) of the Income Tax Act, 1961

Nayan Builders & Developers Pvt Ltd Vs. ITO (ITAT Mumbai) When the High Court admits substantial question of law on an addition, it becomes apparent that the addition is certainly debatable. In such circumstances penalty cannot be levied u!s 271(1)(c) as has been held in several cases including Rupam Mercantile Vs. DCIT [(2004) 91 ITD 237 (Ahd) (TM)] and Smt.Ramila Ratilal Shah Vs. ACIT [(1998) 60 TTJ (Ahd) 171]. _____________________________________ IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “B”, MUMBAI Before Shri R.S.Syal, AM and Smt.Asha Vijayaraghavan, JM ITA No. 2379...