9911796707
TMI Blog2014 (7) TMI 1189X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee pertaining to the issue on which a substantial question of law has been framed by Hon’ble High Court and the same has become debatable then no penalty is leviable thereon. Accordingly, we hold that the AO was not justified in imposing penalty and the CIT(A) confirmed the same without any basis and justified ground which is not sustainable in view of foregoing discussions. Resultantly, the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is factually incorrect. 3. We have heard rival arguments of both the parties and carefully perused the record and other relevant material placed before us. At the outset the Ld. Counsel for the assessee submitted a copy of the order of Hon ble High Court of Delhi in ITA No. 1235/2011 vide dated 29.11.2011 in assessee s own appeal pertaining to the quantum proceedings wherein following substa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the ITAT have set aside the penalty imposed by the Assessing Officer under Section 271(1)(c) of the Income Tax Act, 1961 on the ground that the issue of deduction under section 14A of the Act was a debatable issue. We may also note that against the quantum assessment whereunder deduction under section 14A of the Act was prescribed to the assessee, the assessee had preferred an appeal in this Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntentions of both the parties at the outset we observed that , admittedly the impugned addition pertaining to the amount received by the assessee from M/s. Newell Rubbermaid Inc. has been upheld by the Tribunal. At the same time we also observed that in assessee s appeal ITA No. 1235/2011 order vide dated 29.11.2011 (supra) the Hon ble High Court of Delhi has admitted appeal of the assesee and a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt and the same has become debatable then no penalty is leviable thereon. Accordingly, we hold that the AO was not justified in imposing penalty and the CIT(A) confirmed the same without any basis and justified ground which is not sustainable in view of foregoing discussions. Resultantly, the sole ground of assessee is allowed. 8. In the result, appeal of the assessee is allowed. 9. The orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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