Mere fact that addition has been made or confirmed does not per se lead to imposition of penalty

Advocate Akhilesh Kumar Sah

Giesecke and Devrient [I] Pvt. Ltd Vs. DCIT (ITAT  Delhi)

A issue being a debatable issue at the point of time when the assessee filed its return of income penalty levied under section 271(1)(c) on that count cannot be sustained, mere fact that the addition has been made or confirmed does not per se lead to imposition of penalty

Recently, in Giesecke and Devrient [I] Pvt. Ltd vs. DCIT [ITA No. 1458/DEL/2017 A.Y.: 2005-06, decided on 26.06.2018], the solitary grievance of the assessee was that the CIT(A) erred in upholding the levy of penalty under section 271(1)(c) of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’ for short] amounting to Rs. 1.24 crores. The root cause for levy of penalty lie in the assessment order dated 15.12.2018 framed under section 143(3) of the Act.

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