https://www.taxtmi.com/caselaws?id=178317 The High Court upheld the cancellation of a penalty imposed by the Assessing Officer under section 271(1)(c) of the Income-tax Act, 1961. The tribunal found that the issue of interest earned by the assessee on investments before commencing business was debatable, with two possible views. As the claim was based on a possible view and not concealment of income, the penalty was canceled. The High Court agreed, stating no substantial questions of law arose despite the dismissal of the assessee's quantum appeal. This case emphasizes the importance of bona fide claims and debatable issues in tax matters regarding penalties under section 271(1)(c). en-us Wed, 16 Jul 2008 00:00:00 +0530 Tue, 02 Feb 2016 11:34:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=178317 The High Court upheld the cancellation of a penalty imposed by the Assessing Officer under section 271(1)(c) of the Income-tax Act, 1961. The tribunal found that the issue of interest earned by the assessee on investments before commencing business was debatable, with two possible views. As the claim was based on a possible view and not concealment of income, the penalty was canceled. The High Court agreed, stating no substantial questions of law arose despite the dismissal of the assessee's quantum appeal. This case emphasizes the importance of bona fide claims and debatable issues in tax matters regarding penalties under section 271(1)(c). Case-Laws Income Tax Wed, 16 Jul 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=178317