The Commissioner Of Income Tax-9 } v. J.v.salunke,Pa

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 1330 OF 2012 The Commissioner of Income Tax-9}AppellantversusRahat Industries Ltd.}Respondent Mr. Tejveer Singh for the Appellants. CORAM :-S.C.DHARMADHIKARI &A.A.SAYED, JJ.DATED :-NOVEMBER 19, 2014 P.C. :- We have heard Mr. Tejveer Singh in support of this Appeal, which challenges the order passed by the Income Tax Appellate Tribunal, Mumbai Bench, in Income Tax Appeal No. 2543/Mum/2011. The order dated 10[th] February, 2012 for the assessment year 2007-08 upholds the deletion of penalty by the Commissioner of Income Tax (Appeals). 2)The Tribunal as also the Commissioner, concurrently held that the Assessee has not acted in a manner which would indicate that there is a concealment of the income or furnishing incorrect particulars of income. There was bonafide belief and understanding by the Assessee because of Circular or policy of the State to encourage setting up industries in hilly areas such as Uttarakhand. In such circumstances, for a bonafide act, the penalty imposed has been deleted. We do not find that ingredients of section 271(1)(c) have been satisfied. The Tribunal's order therefore cannot be said to be perverse. There is no merit in the Appeal. It is dismissed. No order as to costs. (A.A.SAYED, J.) (S.C.DHARMADHIKARI, J.)