No Section 271(1)(c) penalty on debatable issue with conflicting views

Ajaybhai I Gogia Vs ITO (ITAT Rajkot) From the fact of the case ITAT observed that there are conflicting judicial precedents on the issue under consideration and therefore, it may be inferred that the issue before us is one in which two views are possible. Further, we note that the Hon’ble Gujarat High Court has also admitted the assessee’s appeal in quantum proceedings. In view of the above, we are of the considered view that the instant case is not a fit case for levy of penalty u/s 271(1)(c) of the Act. The issue is clearly debatable on which various Courts have taken conflicting views....