The Pr. Commissioner Of Income Tax -5 v. Jain Studios Ltd

$~46. * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1064/2018 THE PR. COMMISSIONER OF INCOME TAX -5 ..... Appellant Through Mr. Ruchir Bhatia, Advocate. Through Mr. Ruchir Bhatia, Advocate. versus JAIN STUDIOS LTD. Through Nemo. ..... Respondent CORAM:HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE CHANDER SHEKHAR % O R D E R26.09.2018 The impugned order passed by the Income Tax Appellate Tribunal (Tribunal) deletes penalty imposed under Section 271(1)(c) of the Income Tax Act, 1961, accepting the explanation given by the respondent-assessee as bona fide and genuine. 2. The respondent-assessee had debited Rs.1,53,85,320/- under the head “impairment of asset” and Rs.1,58,891/- against shortfall in bank guarantee. 3. The figures/amounts mentioned are not disputed. The Revenue, however, submits that the expenditure was capital and not revenue in nature as was claimed in the return of income. 4. The question whether particular expenditure is capital or business in nature in certain cases is highly debatable. The Tribunal referring to the factual matrix in the present case has accepted the stand and explanation of the respondent-assessee as bona fide. 5. In view of the aforesaid, no substantial question of law arises for consideration. The appeal is dismissed, without any order as to costs. SANJIV KHANNA, J. SEPTEMBER 26, 2018 VKR CHANDER SHEKHAR, J.