COMMISSIONER OF INCOME TAX Vs. SHIVANI TEXTILES LTD

JUDGEMENT

(1.) The present appeal has been filed under Section 260A of Income Tax Act, 1961 (for brevity "Act, 1961") challenging the order dated 30th November, 2009 passed by the Income Tax Appellate Tribunal (in short "ITAT") in ITA No. 3573/Del/2009, for the assessment year 2001-2002.

(2.) Ms. Suruchii Aggarwal, learned Counsel for Revenue submitted that the ITAT had erred in law in dismissing the Revenue's appeal whereby penalty under Section 271(1)(c) of Act, 1961 amounting to Rs. 11,85,500/- levied by the assessing officer had been deleted. She contended that the assessee's claim with regard to bad debts relating to investment in shares, not being the business of assessee, cannot be held to be bona fide. She relied upon a judgment of Supreme Court in Union of India v. Dharamendra Textiles Processors, 2008 13 SCC 369.

(3.) In our opinion, ITAT in its impugned order has given cogent reasons for not interfering with the order of the Commissioner of Income Tax (Appeal) (in short "Commissioner"). The relevant portion of the impugned order is reproduced hereinbelow: