IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.A. No.335 of 2009 Date of decision: 17.12.2010 The Commissioner of Income Tax. -----Appellant. Vs. The Shahbad Co-op. Sugar Mills Ltd. -----Respondent CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE AJAY KUMAR MITTAL Present:- Mr. Yogesh Putney, Sr.Standing Counsel for the appellant. Mr. S.K. Mukhi, Advocate and Ms. Jyoti, Advocate for the respondent. --- ADARSH KUMAR GOEL, J. The revenue has preferred this appeal under Section 260-A of the Income Tax Act, 1961 (for short, “the Act”) against the order dated 31.10.2008 of the Income Tax Appellate Tribunal, Chandigarh in I.T.A. No.781/CHANDI/2008 for the assessment year 1994-95 claiming following substantial questions of law:- “1. Whether on the facts and in the circumstances of the case, the Ld. ITAT was right in law in confirming the order of CIT(A), deleting the penalty imposed under section 271(1)(c) of the Income Tax Act, 1961, ignoring the fact that the assessee had furnished inaccurate particulars of income by making wrong I.T.A. No.335 of 2009 claim of deduction u/s 80P(2)(a)(iii), even as judicial pronouncements were available against the deduction claimed by it at the time of assessment proceedings? 2. Whether on the facts and in the circumstances of the case, the Ld. ITAT was right in confirming the order of the CIT(A), deleting the penalty under section 271(1) (c) of the Income Tax Act, 1961 ignoring the law of the land settled by the Hon’ble Supreme Court in the case of Union of India and others Vs Dharmendra Textils Processors and others dated September 29, 2008, reported in [2008] 306 ITR 277(SC)?” Learned counsel for the revenue does not dispute that appeal of the revenue on identical questions being I.T.A. No.19 of 2007 The Commissioner of Income Tax, Karnal v. The Shahbad Coop. Sugar Mills Limited has already been dismissed. Accordingly, this appeal is dismissed. (ADARSH KUMAR GOEL) JUDGE December 17, 2010 (AJAY KUMAR MITTAL) ashwani JUDGE 2