The Director Of Income Tax v. M/S Fidelity Management & Research Co

K IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.953 OF 2011 WITH INCOME TAX APPEAL (L) NO. 954 OF 2011 The Director of Income TaxVs.M/s Fidelity Management & Research Co. .. Appellant .. Respondent. Mr. Suresh Kumar for the Appellant.Mr. A.K. Jasani for the Respondent. CORAM: J.P. DEVADHAR & K.K. TATED, JJ.DATE: 12TH SEPTEMBER, 2011. P.C. 1 In both these Appeals the common question of law raised by the Revenue is, whether the ITAT was justified in deleting the penalty levied under section 271(1)(c) of the Income Tax Act, 1961. 2In the present case, the Assessee in its revised return of income has claimed that the income on sale of shares and securities was exempt. The claim of the Assessee was not accepted by the Assessing Officer and penalty was levied under section 271 (1)(c) of the Income Tax Act, 1961. 3The CIT (A) as also the ITAT have deleted the penalty on the ground that where the Assessee makes a wrong claim it does not amount to 7-8 ITXAL 953 954-11.doc furnishing inaccurate particulars so as to levy penalty under section 271 (1) (c) of the Income Tax Act, 1961. In our opinion, no fault can be found with the decision of the ITAT. In the result, both the Appeals are dismissed with no order as to costs. (J.P. DEVADHAR, J.) (K.K. TATED, J.)