No penalty if contention of assessee was plausible and bona fide: Delhi HC

New Holland Tractors (India) Private Limited Vs Commissioner Of Income Tax, Delhi-V (Delhi High Court) In a significant ruling, the Delhi High Court in the case of New Holland Tractors (India) Private Limited Vs Commissioner Of Income Tax, Delhi-V, addressed the critical issue of penalties under Section 271(1)(c) of the Income Tax Act, 1961. The court examined whether the assessee’s conduct was bona fide and whether plausible legal interpretations shielded them from penalties for concealment or furnishing inaccurate particulars of income. 1. Primary Issue: Bona Fide Conduct The core issue be...