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Penalty- sec. 271(1)(c ) – when two views are possible penalty cannot be imposed
Case Law Details
- Case Name
- Ito Vs Mahavir Cycle Industries (ITAT Chandigarh)
- Appeal Number
- Only available for paid members
- Courts
- ITAT Chandigarh
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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 was made on the advice of an outside expert (being the auditor/ chartered accountant) and there being no mala fides, the same would not result in invoking of s. 271(1)(c...
