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PCIT v. Dhariwal Industries Ltd ( 2018) 170 DTR 1 / 304 CTR 870(Bom)(HC),www.itatonline.org

S. 271(1)(c) Penalty- Concealment-Appeal-If appeals with reference to the quantum proceedings have been admitted by the Court on substantial questions of law, it means that there were debatable and arguable questions raised and levy of penalty is not justified . Penalty also cannot be levied if the claim was as per judicial precedents prevalent at the time of filing the ROI. Also, there must be a finding that the details supplied by the assessee in its return were incorrect or erroneous or false.

Dismissing the appeal of the revenue the Court held that , If appeals with reference to the quantum proceedings have been admitted by the Court on substantial questions of law, it means that there were debatable and arguable questions raised and levy of penalty is not justified .( PCIT v. Shree Gopal Housing and Plantation Corporation (2018) 167 DTR 236 ( Bom) (HC) is distinguished, CIT v. Nayan  Builders and Developers (2014) 368 ITR 722 ( Bom) (HC) is followed ). Penalty also cannot be levied if the claim was as per judicial precedents prevalent at the time of filing the ROI. Also, there must be a finding that the details supplied by the assessee in its return were incorrect or erroneous or false. ( Refer CIT v. Advaita  Estate Development Pvt Ltd, ITA No. 1498 of 2014 dt. 17-02-2017 ( Bom) (HC)www.itatonlin.org(ITA No. 1133 of 2016, dt. 04.09.2018)( AY. 2003-04, 2004 -05 , 2005 -06)

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