Itxa/2019/2010 Of The Commissioner Of Income Tax-12,Mumbai v. M/S. Dirfection Slftware Solutions, Mumbai

sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2019 OF 2010 The Commissioner of Income Tax12, Mumbai ..Appellant. V/s. M/s. Direction Software Solutions ..Respondent. Ms. Anamika Malhotra for the appellant.Ms. Beena Pillai for the respondent. CORAM : J.P. DEVADHAR AND A.A. SAYED, JJ. DATED : 1ST AUGUST, 2011 P.C. :- 1.Whether the ITAT was justified in deleting the penalty levied under Section 271(1)(c) of the Income Tax Act, 1961, is the question raised in this appeal. 2.In the present case, the quantum addition was made by disallowing the claim made by the assessee in the return of income. When a claim made by the assessee in the return of income is disallowed, it cannot be said that the assessee has concealed particulars or furnished inaccurate particulars as contemplated under Section 271(1)(c) of the Act. 3.In these circumstances, deleting of the penalty imposed under Section 271(1)(c) of the Act by the ITAT cannot be faulted. 4.In the result, we see no merit in the appeal. The appeal is dismissed with no order as to costs. (A.A. SAYED, J.) (J.P. DEVADHAR, J.)