Penalty- sec. 271(1)(c ) – when two views are possible penalty cannot be imposed

In the case of: ITO Vs MAHAVIR CYCLE INDUSTRIES, Decided by: ITAT, CHANDIGARH, Decided on 24th September, 2009

Gist of decision: No penalty is imposable in respect of vexed legal issues which are debatable or on which two views/opinions are possible. For imposing penalty under s. 271(1)(c), the twin conditions of furnishing of inaccurate particulars or concealment of income has to be satisfied.

Since the claim

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