Imposition of penalty u/s. 271(1)(c) for highly debatable issue not justified: ITAT Bangalore

Hubli Saraku Vs ITO (ITAT Bangalore) ITAT Bangalore held that imposition of penalty under section 271(1)(c) of the Income Tax Act not justified where the issue is highly debatable because there is no question of levying penalty for furnishing inaccurate particulars of income. Facts- Assessee is a credit cooperative society engaged in the business of providing credit facilities to its members for A.Y. 2014 – 15, filed its return of income after claiming deduction u/s. 80 P (2) (a) of the income tax act. After scrutiny, the amount of Claim of deduction of Rs 16,81,635/- was disallowed. Interes...