2017 (6) TMI 735

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....led by the Revenue challenging the judgement of the Income Tax Appellate Tribunal dated 19.10.2016. Following question is presented for our consideration: " Whether in the facts and circumstances of the case and in law, the I.T.A.T is justified in not upholding the penalty u/s.271(1)(c) of the Act imposed by the Assessing Officer and upheld by the CIT(A), without appreciating that the assessee ha....

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....ad to be taxed accordingly. The order of Assessing Officer was confirmed by the CIT(A) and the Tribunal. We are informed that the assessee's appeal against the judgement is admitted and pending before the High Court. 3 The Assessing Officer had instituted penalty proceedings and issued a notice to the assessee in this regard. In response to such notice for penalty, the assessee pointed out that t....

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....said transfer of intellectual properties and amount thereof of Rs. 2.60 crores as a separate line item. [c] The schedule 'L' of notes to accounts and significant accounting policies lists down the related party transactions at para 10 wherein the transaction in question has been reported as a separate I line item as sale of Intellectual property of Rs. 2.60 crores to the subsidiary company." 4....

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....sesses contention that even against the quantum addition the assessee had preferred appeal, which was admitted by the High Court, which would mean that the very issue of taxing the income was debatable. The Tribunal further noted that in the computation of income, the assessee had made full disclosures and had given reasons for treating the income as exempt which was as under: " The assessee comp....