https://www.taxtmi.com/caselaws?id=270555 Penalty was held not leviable where the assessee paid tax and interest after a bona fide belief that the amount was not taxable. Section 80 of the Finance Act, 1994 barred penalty because the taxability issue was debatable, and the later insertion of Explanation 3 to section 67, expressed as being for removal of doubts, supported the view that the position was not free from ambiguity. The assessee's prompt payment of tax and interest further established reasonable cause, so deletion of penalty was justified. en-us Thu, 17 Dec 2015 00:00:00 +0530 Fri, 13 May 2016 11:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=270555 Penalty was held not leviable where the assessee paid tax and interest after a bona fide belief that the amount was not taxable. Section 80 of the Finance Act, 1994 barred penalty because the taxability issue was debatable, and the later insertion of Explanation 3 to section 67, expressed as being for removal of doubts, supported the view that the position was not free from ambiguity. The assessee's prompt payment of tax and interest further established reasonable cause, so deletion of penalty was justified. Case-Laws Service Tax Thu, 17 Dec 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=270555