Itxa/4296/2009 Of The Commissioner Of Income Tax - 5 Mumbai v. Diana Watches And Ancillaries Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.4296 OF 2009 The Commissioner of Income Tax-5 V/s.M/s. Diana Watches & Ancillaries Pvt. Ltd. ..Appellant. ..Respondent. Mr. Vimal Gupta for appellant.Ms. Aasifa Khan for respondent. CORAM : J.P. DEVADHAR AND R.M. SAVANT, JJ. P.C. :- DATED : 30TH NOVEMBER, 2010 1.Short question raised in this appeal is, whether the ITAT was justified in cancelling the penalty of Rs.10,00,000/- levied under section 271(1)(c) of the I.T. Act. 2.The assessee had claimed rent receivable from Vysya Bank as bad debts under the head 'income from business'. Admittedly, in the earlier years, rental income received from Vysya Bank was assessed as 'business income'. The Tribunal has given a finding of fact that the assessee has properly explained reasons for claiming bad debts and that the assessee has neither concealed any income nor filed filed inaccurate particulars before the assessing officer. In these circumstances, deletion of penalty levied under section 271(1)(c) is justified. In our opinion, there is no merit in the appeal and the same is hereby dismissed with no order as to costs. (R.M. SAVANT, J.) (J.P. DEVADHAR, J.)