1 itxa2590-10 sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2590 OF 2010 The Commissioner of Income Tax-8, Mumbai ..Appellant. V/s. M/s. Pierre Cardin Fashions Pvt. Ltd. ..Respondent. Mr. Suresh Kumar for the appellant. None for the respondent. CORAM : J.P. DEVADHAR AND K.K. TATED, JJ. DATED : 16TH AUGUST, 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, is the question raised in this appeal. 2. The Tribunal in para 5 of its decision has recorded that though the assessee had claimed deduction of the provision for royalty in its return of income, during the assessment proceedings the assessee itself withdrew the claim for deduction. In these circumstances, deletion of the penalty levied under Section 271(1)(c) of the Act cannot be faulted. Hence we see no merit in the appeal. The appeal is dismissed with no order as to costs. (K.K. TATED, J.) (J.P. DEVADHAR, J.)