The Commissioner Of Income Tax - 7, Mumbai v. Piramal Enterprises Limited

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.3012 OF 2010 The Commissioner of Income Tax - 7, Mumbai........Appellant.VersusPiramal Enterprises Limited..............Respondent. Mr.Suresh Kumar for the appellant.Mr.J.D. Mistri, Senior Advocate with Mr.Atul K. Jasani for the respondent. CORAM : J.P. Devadhar & Smt.R.P. Sondurbaldota, JJ. DATE : 24[th] June, 2011. P.C. : 1.Whether the Income Tax Appellate Tribunal 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, additions were made on account of interest on advances given to the employees, disallowance of bad debts and dis-allowance of interest was made under Section 14A of the Act. Subsequently, penalty under Section 271(1)(c) was levied on account of the above addition / disallowances, which were deleted by the Income Tax Appellate Tribunal. 3.Admittedly, the appeal filed by the Revenue against the deletion of the addition on interest on advances given to the employees has been dismissed by this Court. As regards the disallowance of bad debts is concerned, making wrong claim cannot be a ground for imposing penalty. In respect of dis-allowance of interest under Section 14A is concerned, the findings recorded by the Tribunal is that the assessee itself has withdrawn the claim of interest during the assessment year in question. In these circumstances, in our opinion, no substantial question of law arises from the order of the Tribunal. The appeal is accordingly dismissed with no order as to costs. (Smt.R.P. Sondurbaldota, J.) (J.P. Devadhar, J.)