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2016 (11) TMI 538 - BOMBAY HIGH COURTPenalty u/s 271(1)(c) - non offering of Income to tax on interpretation placed upon the DTAA - fees received in respect of CICT Services and for Corporate Services from its affiliated companies - Held that:- Two authorities have concurrently come to a finding of fact that the conduct of the Respondent Assessee was bonafide and its claim that amount received from its affiliated companies on account of CICT and Corporate Services is not taxable was based on an interpretation of DTAA. It is a settled position of law that where the issue is debatable then mere making of a claim on the basis of a particular interpretation would not lead to an imposition of penalty. Bearing in mind that for the earlier assessment years the Respondent Assessee had claimed and been granted refund of taxes deducted at source by the affiliated companies in respect of the payment received by it for Corporate Services and CICT Services would also establish that the claim made by the Respondent Assessee that the income received is not chargeable to tax was a bonafide claim. On facts there is a concurrent finding of there being no concealment of income or furnishing an inaccurate claim of income. - Decided in favour of assessee
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