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2019 (5) TMI 1601 - ITAT DELHIPenalty u/s 271(1)(c) - income for taxation in India - income accrued in India - payments received by the appellant from Prasar Bharti were in nature of fees for technical services - DTAA between India and Singapore - debatable issue - Whether the payments received by the appellant from Prasar Bharti be treated as business receipts?’ - CIT-A deleted the penalty levied - HELD THAT:- On looking at the assessment order passed u/s 143 (3) of the income tax act the assessing officer has treated the same income as fees for technical services as per page number 7 of the assessment order. The total income accrued to the assessee of INR 5 2626383/– is taxable at the rate of 20% as held by the assessing officer. Nothing in the assessment order itself that AO has recorded any satisfaction with regard to the fact that the assessee has furnished inaccurate particulars of income or has concealed the income. The learned assessing officer has merely stated that the penalty proceedings u/s 271 (1)( c) may be initiated separately. Therefore, there is no specific charge in the assessment order with respect to the satisfaction about the fault committed by the assessee. The quantum appeals have been admitted by the honourable Delhi High Court [2013 (8) TMI 1108 - DELHI HIGH COURT] , therefore even if the lower authorities have concurrently decided an issue taking same view, the issue becomes debatable. On such a debatable issue penalty cannot be levied. We also found that the ld CIT (A) has correctly relied up on the decision of Honourable supreme court in case of Reliance petro products Limited [2010 (3) TMI 80 - SUPREME COURT] in deleting the penalty as held that otherwise it would be that in every case of return where the claim made by the assessee is not accepted by the assessing officer for any reason it will invite the penalty u/s 271 (1) (C) which is not the intention of the legislature. Therefore we confirm the order of the learned CIT – A in deleting the penalty levied u/s 271 (1) ( C ) - Decided in favour of assessee.
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