2018 (10) TMI 2062

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....arwal (Accountant Member) 1. Aforesaid appeal by revenue for Assessment Year [AY] 2009-10 contest the order of the Ld. Commissioner of Income-Tax (Appeals)- 26, Mumbai, [CIT(A)], Appeal No.CIT(A)-33/IT/103/14-15 dated 21/12/2016 qua deletion of penalty u/s 271(1)(c) for Rs.95.38 Lacs as imposed by Ld. Assessing Officer [AO] vide order dated 06/03/2014 against quantum addition of Rs.2,80,28,291/....

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....2012 which reduced the aggregate quantum addition to Rs. 280.28 Lacs against which the assessee was saddled with penalty of Rs.95.38 Lacs. 4. The assessee contested the penalty with success before Ld. CIT(A) vide impugned order dated 21/12/2016 wherein Ld. CIT(A) deleted the penalty by making following observations:- 6.5 In the instant case, the appellant filed return of income for the....

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.... same was confirmed by the CIT(A). During appellate proceedings, the appellant AR has submitted a copy of order passed by the Hon'ble ITAT in ITA No.2056/Mum/2013, dated 28.09.2016 wherein the ITAT has estimated the disallowance at Rs.20,00,000/- as against Rs.2,80,28,291/- confirmed by the CIT(A). Now the factual matrix has entirely changed in the light of the Hon'ble ITAT order. Moreover, during....

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....h was not accepted or was not acceptable to revenue, that by itself would not attract penalty under section 271(1)(c) of the Act. Moreover, the Hon'ble ITAT has estimated the disallowance at Rs.20,00,000/- as against Rs.2,80,28,291/- confirmed by the CIT(A). The issue is very debatable and controversial and plethoras of judgments are for and against the treatment of such expenses. Therefore, I her....