Where issue is a debatable legal issue, penalty U/s. 271(1)(c ) not leviable: PVR case

DCIT Vs PVR Ltd. (ITAT Delhi) Advocate Akhilesh Kumar Sah Many cases are emerging out in which it is being held that where a claim by assessee is in respect of a debatable issue, penalty under section 271(1)(c ) of the Income tax Act, 1961(for short ‘the Act’) cannot be imposed. Recently, in DCIT vs. PVR Ltd. [ITA No. 1577/Del/2014, A.Y.: 2006-07, decided on 01.11.2017], one of the issue related to the penalty on disallowance of Rs.70,08,183/- on account of ESOP expenditure, the accounts of the assessee were duly audited, tax audit report, computation of income and income tax return were...