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 provided, the taxpayer incurred a loss to the tune of Rs. 4.27 crores on account of costs related to excess capacity, costs incu...