COMMISSIONER OF INCOME TAX Vs. KRISHNA MARUTI LTD.

JUDGEMENT

(1.) HE respondent -assessee had claimed certain expenditure allowable as revenue expenditure. This claim of the assessee was disallowed in the assessment proceedings by the Tribunal holding the expenditure to be of capital in nature. On this basis penalty proceedings were also initiated by the AO under s. 271(1)(c) of the IT Act, 1961. This penalty, however, has been set aside by the CIT(A) as well as by the Tribunal, holding that the claim made by the assessee that expenses incurred were revenue in nature, is debatable and therefore it could not attract penalty. The following observations are made in this behalf :

(2.) WE agree with the aforesaid conclusions. No question of law arises. These appeals are accordingly dismissed. CM Nos. 21637 of 2010 and 21638 of 2010 in IT Appeal No. 1935 of 2010. CM No. 21640 of 2010 in IT Appeal No. 1937 of 2010. CM Nos. 21641 of 2010 and 21642 of 2010 in IT Appeal No.1938 of 2010

(3.) IN view of the dismissal of the appeal, these applications are disposed of.