Penalty cannot be levied if addition itself was debatable

M/s Google India Pvt.Ltd. Vs ACIT (ITAT Bangalore)

It is pertinent to observe that while passing assessment order Ld.AO initiated penalty proceedings without referring to any charge as to for “concealment of income” or “filing of inaccurate particulars of income”. Further Ld. AO subsequent to order passed by Ld. CIT (A) passes penalty order, wherein penalty has been levied for deliberateness of “tax evasion”, which in our considered opinion is not at all the requirement of Sec.271(

Please become a Premium member. If you are already a Premium member, login here to access the full content.