1 itxa6305-10 sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.6305 OF 2010 The Commissioner of Income Tax-8, Mumbai ..Appellant. V/s. M/s.APW President System Ltd. ..Respondent. Mr. Suresh Kumar for the appellant. Mr. Ajay Singh for the respondent. CORAM : J.P. DEVADHAR AND A.R. JOSHI, JJ. DATED : 18TH NOVEMBER, 2011 P.C. :- 1. Whether the ITAT was justified in deleting the penalty levied under Section 271(1)(c) of the Income Tax Act, 1961 ('the Act' for short), is the question raised in this appeal. 2. The assessment year involved herein is AY 2003-04. 3. The assessee was entitled to deduction under Section 35AB of the Act from the assessment years 1998-99 to 2002-03. It was the case of the assessee that in the assessment year in question, deduction 2 itxa6305-10 under Section 35AB of the Act was claimed inadvertently. The ITAT has accepted the contention of the assessee that the claim made by the assessee under Section 35AB of the Act in the assessment year in question was a bonafide mistake and, therefore, there is no ground for imposing penalty under Section 271(1)(c) of the Act. In our opinion, no fault can be found with the finding recorded by the ITAT. The appeal is accordingly dismissed with no order as to costs. (A.R. JOSHI, J.) (J.P. DEVADHAR, J.)