Section 271(1)(c) of the Income Tax Act, 1961 — Penalty — Concealment Penalty — Penalty cannot be levied as the issue itself was debatable.
Facts: Being aggrieved of the order of Tribunal, Revenue went on appeal before High Court and raised the question of law that "A. Whether the Appellate Tribunal is correct in law and in fact in upholding the decision of the ld. CIT(A) and deleting the penalty of Rs. 67,26,000/- u/s .271(1)(c) levied on account of concealment of income by way of wrong claim of cost of acquisition to evade long term capital gains?
B. Whether 'ignorance of law' can be a valid ground to hold that the assessee has not concealed the income and penalty u/s. 271(1)(c) is not leviable?"
Held, that the issue pertains to valuation of leasehold rights as on 1.4.1981. The Assessing Officer did not accept valuation adopted by the assessee and made corresponding additions. We notice that on merits itself substantial additions were deleted by higher authorities. Thus the issue itself was highly debatable and substantially fact based. In background of such facts the Tribunal held that this is not a fit case for penalty. No interference is needed. Tax Appeal is dismissed.[2018] 48 ITCD 72 (GUJ)