Penalty should not be imposed if full disclosure of the facts of the case made by the Assessee

The Delhi Bench of the Income – tax Appellate Tribunal (Delhi Tribunal), in the case of Vertex Customer Services (India) Pvt. Ltd. (the taxpayer) held that exclusion of provision of doubtful debts from the operating expenses being a debatable issue and considering full disclosure made by the taxpayer; the taxpayer could not be held liable for penalty.

Facts of the Case

• The taxpayer was engaged in the business of running call centre. From the financial services pr

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