CIT Vs. SARLA FABRICS PVT LTD

JUDGEMENT

(1.) THE Revenue claims to be aggrieved by the order of the ITAT in ITA No.3735/DEL/2010 dated 22.10.2010.

(2.) THE facts in this case are not in dispute. The assessment in the case was completed on 23.12.2005 when a loss of Rs.2,30,53,433/- was claimed. The assessee had claimed deduction under Section 80HHC to the extent of Rs.1,32,88,262/-. This amount was disallowed and the assessee lost its case on merit before the CIT (A) as well as Tribunal. In this backdrop, the Revenue initiated proceedings under Section 271 (1) (c) contending that penalty was justifiably leviable. The CIT (A) allowed the assessee's appeal against the order of AO. The Revenue's appeal was rejected by the impugned order where it was held that: -

(3.) HAVING regard to these facts, this Court is of the opinion that the decision of the Tribunal impugned in this case does not suffer from any legal infirmity. No question of law is made out. The Appeal is accordingly dismissed.