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2024 (5) TMI 218 - ITAT DELHIPenalty u/s 271(1)(c) - addition on account of transfer pricing adjustment - HELD THAT:- As in the case of Chegg India (P) Ltd. [2020 (11) TMI 776 - ITAT DELHI] wherein the Tribunal has held that if AO did not apply his mind to satisfy as to which limb of section 271(1)(c) of the Act, penalty was being initiated then penalty levied by AO and confirmed by CIT(A) is not sustainable in eye of law and should be deleted. Undisputedly, addition made by AO in the account of transfer pricing adjustment. The assessee has filed the appeal against the order and in appeal CIT(A) has confirmed the addition on account of Arm’s Length price and has deleted disallowances on account of foreign exchange fluctuation loss. Revenue has filed the appeal before ITAT against the order of CIT(A) and learned ITAT allowed the appeal against which assessee has filed an appeal before the Hon’ble Delhi High Court [2024 (1) TMI 1274 - DELHI HIGH COURT] in which substantial question of law has been framed. In the present case, substantial question of law has been framed by the Hon’ble Court in the appeal filed by the assessee challenging the addition confirmed by the Tribunal. The issue become debatable, no penalty in such consideration can be levied against the assessee. Assessee appeal allowed.
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