The Commissioner Of Income-Tax - 4, Mumbai v. Khandwala Securities Limited

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.1506 OF 2010 The Commissioner of Income-Tax - 4, Mumbai Versus Khandwala Securities Limited ..Appellant. ..Respondent. Mr.Vimal Gupta for the appellant.Mr.B.G. Yewale i/by Rajesh Shah & Co., for the respondent. CORAM : J.P. Devadhar & Smt.R.S. Dalvi, JJ. P.C. : DATE : 7[th] March, 2011. 1.This appeal is filed by the Revenue against the order of the Income Tax Appellate Tribunal deleting the penalty levied under Section 271(1)(c) of the Income Tax Act, 1961. The penalty was levied on account of the additions made in the reassessment order by holding that the amount of Rs.5.50 lakhs paid for stock exchange membership card cannot be allowed as a revenue expenditure. The said addition was deleted by the Tribunal. 2.Counsel for the Revenue fairly states that in view of the judgment of the Apex Court in the case of Techno Shares and Stocks Limited V/s. Commissioner of Income Tax reported in [2010] 327 ITR 323 (SC), the expenditure incurred for acquiring stock exchange membership card would be allowable expenditure. 3.In this view of the matter, since the quantum addition is deleted, deletion of penalty imposed under Section 271(1)(c) of the Income Tax Act, 1961 pursuant to the deletion of the quantum addition cannot be faulted. Accordingly, we see no merit in this appeal. The appeal is dismissed with no order as to costs. (Smt.R.S. Dalvi, J.) (J.P. Devadhar, J.)