1 itxa2476-10 agk IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2476 OF 2010 The Commissioner of Income Tax - 7 ..Appellant. Versus M/s.The Swastik Safe Deposits & Investments Ltd. ..Respondent. Mr.Suresh Kumar for the appellant. Mr.Atul K. Jasani for the respondent. CORAM : J.P. Devadhar & Smt.R.P. Sondurbaldota, JJ. DATE : 1st July, 2011. P.C. : 1. Whether the Income Tax Appellate Tribunal was justified in deleting the penalty levied under Section 271(1)(c) of the Income Tax Act, 1961 is the question raised in this appeal. 2. In the present case, the assessee has claimed expenditure of Rs. 5,28,150/- on account of stamp duty, which was disallowed on the ground that the expenditure is capital in nature. Similarly, disallowances were also made under Section 14A which was enhanced by CIT (A) and reduced by the ITAT. On account of the above disallowances, penalty under Section 271(1) 2 itxa2476-10 (c) of the Act was imposed. 3. The ITAT deleted the penalty, on the ground that the stamp duty claim was made because the assessee bona fide believed that the said expenditure was allowable as revenue expenditure. Similarly, in respect of the disallowance under Section 14A of the Act is concerned, the Tribunal in para-11 of its order has recorded a finding of fact that when there were differences amongst the officers of the department as to what should be the quantum of disallowance, the assessee cannot be said to have concealed or given inaccurate particulars as envisaged under Section 271(1)(c) of the Income Tax Act, 1961. 4. In our opinion, the decision of the Tribunal is based on finding of fact. No substantial question of law arises out of the order of the Tribunal. The appeal is accordingly dismissed with no order as to costs. (Smt.R.P. Sondurbaldota, J.) (J.P. Devadhar, J.)