CIT Vs. HCIL KALINDEE ARSSPL AND ORS.

JUDGEMENT

(1.) These are two appeals by the Revenue directed against the common impugned order dated 25th November, 2015 passed by the ITAT in ITA Nos. 4580/DEL/2010 and 4579/DEL/2010 for the Assessment Year ('AY') 2007 -08 allowing the appeals in favour of the Assessees both of whom are joint ventures.

(2.) The question of law framed in both these appeals is "Whether the ITAT erred in law and on merits in deleting the penalty levied u/s 271 (1) (c) of the Income Tax Act, 1961 -

(3.) In the course of the assessment proceedings the AO noted that the Assessee had claimed deduction under Sec. 80I A of the Act in terms of the Auditor's report in Form NO. 10CCB. The AO disallowed the claim by referring to the Explanation under Sec. 80I A (13) of the Act. The additions directed to be made by the AO attained finality with the Assessee not challenging the said order.