The Commissioner Of Income Tax – 9, Mumbai v. M/S.allied Instruments Private Limited

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.988 OF 2011 The Commissioner of Income Tax – 9, Mumbai ..Appellant. Versus M/s.Allied Instruments Private Limited..Respondent. Mr.Vima Gupta for the appellant.Mr.Sanjiv M. Shah for the respondent. CORAM : J.P. Devadhar &K.K. Tated, JJ. P.C. : DATE : 16th September 2011 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.The assessment year involved herein is AY 2001-02. 3.In the present case, the assessing officer has re-opened the assessment for assessment year 2001-02 and in the reassessment order partial claim of the assessee made under Section 80IB of the Income Tax Act, 1961 was disallowed by following his decision in the case of assessee for assessment year 2002-03. The assessing officer thereupon levied penalty under Section 271(1)(c) of the Income Tax Act, 1961 on the ground that the assessee had made wrong allocation of expenses. 4.. Admittedly, the disallowance made by the assessing officer for assessment year 2002-03 has been set aside by the Income Tax Appellate Tribunal and the matter is restored to the file of the assessing officer for fresh examination. 4.In this view of the matter, in our opinion this is not a fit case for imposition of penalty under Section 271(1)(c) of the Income Tax Act, 1961. Accordingly, the appeal is dismissed with no order as to costs. (K.K. Tated, J.) (J.P. Devadhar, J.)