Penalty under Section 271(1)(c) canceled as unjustified; appeal allowed citing debatable penalty issue and law questions

The HC held that the penalty under section 271(1)(c) was unjustified and allowed the appeal. The Tribunal noted that the penalty issue was debatable, referencing ongoing quantum proceedings and substantial questions of law. The HC concurred, finding no grounds for imposing the penalty and upheld its cancellation, ruling in favor of the assessee.

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The High Court of Bombay dismissed the appeal as it did not raise any substantial question of law. The penalty imposed was found unjustified and debatable. The appeal was allowed, and no costs were awarded.

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