On appeal before the Tribunal, the Tribunal, held that, penalty provisions u/s. section 271(1)(c) of the Act were not attracted since the Assessee had bona fide belief that reimbursement are not taxable based on the existing judicial decisions. It was further held that, the income was offered to tax in the revised return of income, before any enquiry /discussion by the AO. Order of CIT (A) deleting the penalty is affirmed. (AY. 2004-05 2007-08)
Adidas Sourcing Ltd. v. DCIT (2019) 175 DTR 245 / 198 TTJ 130 (Delhi)(Trib.)
S. 271(1)(c) : Penalty–Concealment of Income–Revised return- Reimbursement of expenses-Information with respect to the impugned transaction was duly disclosed in notes to computation annexed along with original return of income and the assesse had offered a part of income in revised return of income to tax, penalty could not levied.