The Tribunal confirmed that the addition had been made in the deeming provision and was debatable. Such a highly debatable issue could not be the subject matter of penalty for filing inaccurate particulars of income or concealment of income when the facts were very much available with the Assessing Officer. Order of CIT(A) deleting the penalty was affirmed. (AY.2004-05 to 2006-07)
ITO v. Chetan Seth (2022) 97 ITR 597 (Delhi) (Trib)
S. 271(1)(c) : Penalty-Concealment-Inaccurate particulars of income-Deemed dividend taxed in the hands of assessee-Question in whose hands dividend to be taxed-cannot be subject matter of penalty for irregular particulars of income-Penalty levied incorrect. [2(22)(e)]