Penalties under Sections 271(1)(c) and 270A deleted for taxpayer who claimed software distribution receipts weren't taxable in India

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....The ITAT ruled that penalties under sections 271(1)(c) and 270A against the taxpayer were improper and directed their deletion. The tribunal held that merely making an unsustainable claim that receipts from software distribution were not taxable in India cannot constitute furnishing inaccurate particulars to warrant penalty under s.271(1)(c), especially when the taxpayer fully cooperated during assessment proceedings. Regarding s.270A penalty for under-reported income (where DRP reduced attribution from 80% to 30%), the ITAT determined this was not an automatic penalty situation, citing D.C.Polyester and Hindustan Steel Ltd precedents. The tribunal found the exception under s.270A(6)(a) applicable as the taxpayer had disclosed all material facts and provided bona fide explanations.....