2009 (12) TMI 695

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..... New Delhi dated February 24, 2009 for the assessment year 2005-06. The only ground raised by the Revenue reads as under: "On the facts and in the circumstances of the case, the learned Commissioner of Income-tax (Appeals) erred in law and on the facts in deleting the penalty of Rs. 2,10,000 levied by the Assessing Officer under section 271(1)(c) of the Income-tax Act, 1961." The brief facts of .....

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..... 1)(c) and after hearing the assessee imposed a penalty of Rs. 2.10 lakhs. Against the penalty order of the Assessing Officer, the assessee was in appeal before the learned Commissioner of Income-tax (Appeals) who has deleted the penalty and now the Revenue is in appeal before us. The learned Departmental representative for the Revenue supported the penalty order passed by the Assessing Officer wh .....

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..... by the learned Departmental representative for the Revenue in the order of the learned Commissioner of Income-tax (Appeals). We are in agreement with the learned Commissioner of Income-tax (Appeals) that in the facts and circumstances of the present case, penalty is not justified because this issue is always debatable as to whether the particular repair expenses is of revenue nature or of capital .....

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