COMMISSIONER OF INCOME TAX Vs. AMBATTUR CLOTHING LIMITED

JUDGEMENT

(1.) This appeal is by the Revenue, questioning the wisdom of the Tribunal in deleting the penalty under Section 271(1)(c) of the Act by raising the following substantial questions of law :

(2.) Heard Mr.T.Ravikumar, learned Standing Counsel for the Department.

(3.) In an assessment made pursuant to a notice issued under Section 143(2), the Assessing Officer found that there were four items, on which, the claim of the assessee was wrong. The first related to dis-allowance under Section 94(7). The second related to the purchase of software and treatment of revenue expenditure as capital in nature. The third related to the issue of incidental expenditure, which was found to be not supported by proof. The fourth related to interest on income tax. The assessee has duly debited the amount to its profit and loss account, but it did not add back.