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Comm. Of Income Tax-Ii,Delhi vs M/S Liquid Investment And Trading Co. ... on 26 February, 2015

10. In view of what has been discussed above, since substantial question of law has been framed by Hon'ble High Court on the issue if the assessee is having fixed place PE in India, which is the basis of levying/confirming the penalty u/s 271(1)(c) of the Act, the issue becomes debatable, hence penalty u/s 271(1)(c) is not leviable. Reliance in this regard is placed on the decision rendered 10 ITA No.6403/Del./2018 ITA No.695, 696 & 697/Del./2019 by Hon'ble Delhi High Court in ITA 240/2009 in CIT-II vs. Liquid Investment and Trading Co. order dated 05.10.2010 whereby identical issue is decided as under :-
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