1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.730 OF 2009 The Commissioner of Income Tax ..Appellant. V/s. M/s. IMFA Holding P. Ltd. ..Respondent. Mrs. Padma Divakar for appellant. Ms. R. Roy i/b. Roys Law Firm for respondent. CORAM : DR. D.Y.CHANDRACHUD AND J.P.DEVADHAR, JJ. DATED : 29TH MARCH, 2010 P.C. :- 1. Office objections are waived. Registry is directed to number the appeal. 2. The Tribunal has dismissed the appeal filed by the Revenue against the deletion of a penalty imposed under Section 271(1)(c) of the Income Tax Act, 1961, by the Commissioner of Income Tax (A). The Tribunal has observed that the basis of the imposition of the penalty was a claim towards bad debts in the amount of Rs.24.97 lakhs which had been disallowed by the 2 Assessing Officer. However, in the quantum appeal, the Tribunal by its order dated 11th October, 2006 set aside the disallowance made by the Assessing Officer. In these circumstances, by the impugned order the Tribunal held that as a result of the order passed in the quantum appeal, the basis for the levy of a penalty did not exist. Counsel appearing on behalf of the Revenue states that the appeal filed before this Court against the decision of the Tribunal in the quantum appeal has been dismissed and in the circumstances, the disallowance which was made by the Assessing Officer stands deleted. In view of the statement which has been made on behalf of the Revenue, it appears that the basis for the imposition of penalty does not survive. In the circumstances, the appeal of the Revenue does not raise any substantial question of law and is accordingly dismissed. (J.P.DEVADHAR, J.) (DR. D.Y.CHANDRACHUD, J.)