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* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ ITA 1508/2010
THE COMMISSIONER OF
INCOME TAX (LTU) ..... Appellant
Through: Mr. Sanjeev Sabharwal, , Advocate
versus
NESTLE INDIA LTD. ..... Respondent
Through: Mr. Ajay Vohra, Advocate with
Ms. Kavita Jha, Advocate.
% Date of Decision: 01st October, 2010
CORAM:
HON’BLE THE CHIEF JUSTICE
HON’BLE MR. JUSTICE MANMOHAN
1. Whether the Reporters of local papers may be allowed to see the judgment?
2. To be referred to the Reporter or not?
3. Whether the judgment should be reported in the Digest?
MANMOHAN, J
CM No. 17302/2010 (exemption)
Allowed, subject to all just exceptions.
Accordingly, the application stands disposed of.
ITA 1508/2010
1. The present appeal has been filed under Section 260A of Income
Tax Act, 1961 (for brevity, “Act”) challenging the order dated 06th
November, 2009 passed by the Income Tax Appellate Tribunal (in short
“Tribunal”) in ITA No. 12/Del/2008, for the Assessment Year 1995-
1996.
ITA 1508/2010 Page 1 of 2
2. The issue involved in this appeal is with regard to deletion of
penalty imposed by the Assessing Officer (in short, “AO”) under
Section 271(1)(c) of the Act in respect of guest house expenses and the
claim of the respondent-assessee for interest income from Fixed
Deposit Receipts under Section 80HHC of the Act.
3. Mr. Sanjeev Sabharwal, learned counsel for the revenue fairly
stated at the bar that the respondent-assessee had filed its return of
income for the relevant assessment year much prior to the issuance
being finally settled by this Court and the Supreme Court against the
respondent-assessee.
4. Consequently, as the said expenses were debatable on the date
the respondent-assessee filed its return, we are of the opinion that no
penalty can be levied [see Malabar Industrial Co. Ltd. Vs. CIT (2000)
243 ITR 83 (SC)]. Accordingly, the present appeal is dismissed in
limine.
MANMOHAN, J
CHIEF JUSTICE
OCTOBER 01, 2010
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ITA 1508/2010 Page 2 of 2