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2018 (8) TMI 1356 - ITAT DELHILevy of penalty u/s 271(1)(c) - assessee contended that, (a) mere addition to income, ipso facto, cannot lead to imposition of penalty, (b) not challenging the addition during assessments does not tantamount to acceptance of wrong doing. - Held that:- In the facts of the present case assessee was under the belief that due to the ‘make available’ Clause in Article 12 (4) (b) of India Singapore DTAA, the consideration paid by the Indian customers to assessee cannot be regarded as ‘fees for technical services’ and further since there was no transfer of technology involved in the services extended by assessee, the consideration for such services could not be taxed under Article 12(4)( b) of the DTAA. In the facts of the present case assessee had offered explanation and the submissions as to why receipts were not offered to tax for the year under consideration, by relying on the legal position. Thus assessee had acted in a bona fides manner and had also furnished all material facts and particulars in respect of the same. - No penalty - Decided in favor of assessee.
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