ITXA1397.13.doc IN HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 1397 OF 2013 Commissioner of Income Tax 8 ... Appellant Vs Tainwala Chemicals & Plastics India Ltd. ... Respondent Mr. Arvind Pinto for Appellant. Mr. P.C. Tripathi i/b Mr.Mihir Naniwadekar for Respondent. CORAM : S.C. DHARMADHIKARI & A.K. MENON, JJ. THURSDAY, 16TH APRIL, 2015 P.C. : 1. We have heard both sides and perused order passed by Tribunal dated 29th November, 2012, which is impugned in this appeal. assessment year is 2004-05. Revenue's appeal was pertaining to deletion of penalty levied under section 271(1)(c) of Income Tax Act, 1961. Commissioner has deleted these penalties and partially. Revenue was aggrieved by fact that Commissioner should not have interfered with this levy of penalty as on all grounds viz. provision for doubtful loan of Rs.1,90,51,000/- and SRP 1/3 ::: Uploaded on - 18/04/2015 ::: Downloaded on - 25/04/2020 16:05:04 ::: ITXA1397.13.doc long term capital loss of Rs.3,06,75,158/- and finally disallowing of expenditure under section 14A in respect of dividends. assessee had not furnished accurate particulars and thereby clause (c) of sub- section (1) of section 271 was attracted. 2. Tribunal has completely scrutinised and verified from Commissioner's order reasons why he deleted penalties. 3. Tribunal found that there was no basis for levy of penalty as point or issue raised was debatable. Merely because claim which is not sustainable on merits has been raised that does not justify levy of penalty and its imposition, therefore, was set aside. That was also set aside because Tribunal found that assessee's grounds had merit and in substantive / quantum proceedings it agreed with assessee's version. In circumstances, it rightly deleted penalty imposed. 4. We do not see any substantial question of law arising from such order of Tribunal. It is neither perverse nor vitiated by any SRP 2/3 ::: Uploaded on - 18/04/2015 ::: Downloaded on - 25/04/2020 16:05:04 ::: ITXA1397.13.doc error of law apparent on face of record. We, therefore, proceed to dismiss this appeal. There shall be no order as to costs. A.K. MENON, J. S.C. DHARMADHIKARI , J. SRP 3/3 ::: Uploaded on - 18/04/2015 ::: Downloaded on - 25/04/2020 16:05:04 ::: Commissioner of Income-tax-8 v. Tainwala Chemicals & Plastics India Ltd