Bench: Shri N.K.Billaiya & Shri Kul Bharat[Assessment Year : 2010-11] Max Life Insurance Company Ltd., Vs Acit, Plot No.90A, Sector-18, Udyog Vihar, Circle-1, Ltu, Gurgaon, Haryana-122018. New Delhi. Pan-Aaccm3201E Appellant Respondent Appellant By Shri Himanshu Sinha, Adv. & Shri Bhuvan Dhoopar, Adv. Respondent By Shri Jeetender Chand, Sr.Dr Date Of Hearing 18.10.2022 Date Of Pronouncement 18.10.2022 Order Per Kul Bharat, Jm : The Present Appeal Filed By The Assessee Is Directed Against The Order Of Ld. Cit(A)-22, New Delhi, Dated 29.11.2018 For The Assessment Year 2010-11. The Assessee Has Raised Following Grounds Of Appeal:- 1. “That On The Facts & Circumstances Of The Case & In Law, The Ld. Cit(A) Erred In Upholding Penalty Levied By The Ao Under Section 271(1)(C) Of The Act Without Considering The Material Available On Record. 2. That On The Facts & Circumstances Of The Case & In Law, The Ld. Cit(A)/Ao Has Failed To Appreciate That The Penalty Proceedings Are Separate & Distinct From Assessment Proceedings & Mere Disallowance Of A Claim Made By The Appellant Does Not Automatically Lead To Imposition Of Penalty Under Section 271(1)(C). 3. That On The Facts & Circumstances Of The Case & In Law, The Ld. Cit(A)/Ao Has Failed To Appreciate That The Issue Involved In Appellant’S Case Is Purely A Legal Issue To Be Decided On Interpretation Of The Provisions Of The Act & Merely Because Ld. Ao Adopts A View

196 CTR 187, wherein it was held that the use of expression “may” clearly- show that penalty is not an automatic consequence of concealment of income or furnishing inaccurate particulars thereof. The Court observed as under: “6. A bare reading of the provisions of section 271(1), which vests the authorities concerned with the power to impose penalty, clearly postulates