The Commissioner Of Income Tax v. The Shahbad Co-Op. Sugar Mills Ltd

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. I.T.A. No.335 of 2009 Date of decision: 17.12.2010 The Commissioner of Income Tax. Vs. The Shahbad Co-op. Sugar Mills Ltd. -----Appellant. -----Respondent CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOELHON'BLE MR. JUSTICE AJAY KUMAR MITTALHON'BLE MR. JUSTICE AJAY KUMAR MITTAL Present:-Mr. Yogesh Putney, Sr.Standing Counselfor the appellant. for the appellant. Mr. S.K. Mukhi, Advocate andMs. Jyoti, Advocatefor the respondent. --- ADARSH KUMAR GOEL, J. The revenue has preferred this appeal under Section260-A of the Income Tax Act, 1961 (for short, “the Act”) againstthe order dated 31.10.2008 of the Income Tax Appellate Tribunal,Chandigarh in I.T.A. No.781/CHANDI/2008 for the assessmentyear 1994-95 claiming following substantial questions of law:- “1. Whether on the facts and in the circumstances of thecase, the Ld. ITAT was right in law in confirming theorder of CIT(A), deleting the penalty imposed undersection 271(1)(c) of the Income Tax Act, 1961,ignoring the fact that the assessee had furnishedinaccurate particulars of income by making wrongcase, the Ld. ITAT was right in law in confirming theorder of CIT(A), deleting the penalty imposed undersection 271(1)(c) of the Income Tax Act, 1961,ignoring the fact that the assessee had furnishedinaccurate particulars of income by making wrong claim of deduction u/s 80P(2)(a)(iii), even as judicialpronouncements were available against thededuction claimed by it at the time of assessmentproceedings? 2. Whether on the facts and in the circumstances of thecase, the Ld. ITAT was right in confirming the order ofthe CIT(A), deleting the penalty under section 271(1)(c) of the Income Tax Act, 1961 ignoring the law ofthe land settled by the Hon’ble Supreme Court in thecase of Union of India and others Vs DharmendraTextils Processors and others dated September 29,2008, reported in [2008] 306 ITR 277(SC)?” Learned counsel for the revenue does not dispute thatappeal of the revenue on identical questions being I.T.A. No.19 of2007 The Commissioner of Income Tax, Karnalv. TheShahbad Coop. Sugar Mills Limitedhas already beendismissed. Accordingly, this appeal is dismissed. (ADARSH KUMAR GOEL) JUDGE December 17, 2010ashwani (AJAY KUMAR MITTAL) JUDGE