itxa-5750-10 Ladda IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL No. 5750 of 2010. The Commissioner of Income-tax - Mumbai ... Appellant. Versus M/s. Mars Foods Services ... Respondent. Mr Suresh Kumar for the appellant. Mr Jitendra Jain i/by PDS Legal for the respondent. CORAM : J.P. Devadhar & A.R. Joshi, JJ. DATE : 2 December, 2011. P.C. :- Whether the ITAT was justified in deleting the penalty levied under section 158BFA (2) of the Income tax Act, 1961, is the question raised in this appeal. In the present case, return for the block period was filed by the assessee on 28th September,2011 declaring certain undisclosed income. In view of the subsequent amendment to Section 158BFA of the Act by Finance Act 2002 with retrospective effect from 1.7.95 additional liability was imposed on the assessee. The question was, whether the penalty can be levied on the said additions made pursuant to the retrospective amendment introduced by Finance Act,2002.The Apex Court in the case of CIT vs. Hindustan Electro Graphites Ltd reported in 243 ITR 48 has held that where the additional liability is itxa-5750-10 Ladda imposed on account of the retrospective amendment introduced by the Act, penalty cannot be levied. In this view of the matter, there is no merit in the appeal. The appeal is dismissed. (A.R.Joshi,J) (J.P.Devadhar,J.)