14 May 2013
It is highly debatable issue. However, there is good scope if you argue on the merits. You need to justify that it is not covered under explanation to section 37(1) and it is compensatory in nature. further some judgments on penalty are there to help on this:
1. Regalia Apparels Pvt. Ltd. (Bombay HC) (22 of 2013) 2.Stock and Bond Trading Company (4117 of 2010)
3. various judgment on various type of penalties.
these are available on ITAT website (http://www.itatonline.org/index.php)
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