2010 (1) TMI 1212 - AT - Income Tax

Summary

Issues involved: Appeal against deletion of penalty u/s 271(1)(c) of the IT Act, 1961 for asst. yr. 2004-05.

Summary:
The Revenue appealed against the deletion of penalty u/s 271(1)(c) by the learned CIT(A). The issue revolved around the inclusion of export incentives for deduction under s. 80-IB. The Tribunal considered the case of Oriental Rug Co. and similar assessees, where the penalty was deleted based on the debatable nature of the issue. The Tribunal noted that the claim was made based on expert advice and that there were conflicting decisions by different High Courts. The Tribunal emphasized that the assessees had disclosed complete details and the claims were bona fide. The Tribunal concluded that no penalty could be imposed in such circumstances. The Tribunal upheld the deletion of penalty by the learned CIT(A) based on these considerations.

In conclusion, the appeal filed by the Revenue was dismissed by the Tribunal.