https://www.taxtmi.com/caselaws?id=214765 The penalty imposed under section 271(1)(c) of the IT Act, 1961 for assessment year 2001-02 based on the treatment of interest income was challenged. The Ld. CIT(A) deleted the penalty, considering the debatable nature of the issue and past practices. The ITAT upheld this decision, emphasizing that penalties should not be imposed when issues are subject to varying legal interpretations and when all relevant information is disclosed in the return, even if legal claims are later deemed incorrect. en-us Mon, 25 Jun 2012 00:00:00 +0530 Tue, 10 Jul 2012 11:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=214765 The penalty imposed under section 271(1)(c) of the IT Act, 1961 for assessment year 2001-02 based on the treatment of interest income was challenged. The Ld. CIT(A) deleted the penalty, considering the debatable nature of the issue and past practices. The ITAT upheld this decision, emphasizing that penalties should not be imposed when issues are subject to varying legal interpretations and when all relevant information is disclosed in the return, even if legal claims are later deemed incorrect. Case-Laws Income Tax Mon, 25 Jun 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=214765