1 ITXAL905-11.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ttm INCOME TAX APPEAL (L) NO.905 OF 2011 The Commissioner of Income Tax-5 .. Appellant Vs. M/s.Cheryl Laboratories P.Ltd. .. Respondent. Ms.Suchitra Kamble for the appellant Mr.Atul K. Jasani for the respondent CORAM : J.P. DEVADHAR & K.K. TATED, JJ. DATE : 9TH SEPTEMBER, 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 ITAT in para 7 of its order has recorded a finding of fact that in the present case, the assessee had made a claim which was not allowable. Making a wrong claim cannot be a ground to hold that the Assessee has concealed income or furnished inaccurate particulars of income. In these circumstances, deletion of the penalty levied under section 271(1)(c) of the Act cannot be faulted. 3. Accordingly, the appeal is dismissed. (K.K. TATED, J.) (J.P. DEVADHAR, J.) 2 ITXAL905-11.doc