2012 (11) TMI 411

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..... ENT: This appeal by the Revenue and CO by the assessee are directed against the order of the CIT(A)-XVI, Ahmedabad dated 2.7.2009. These are being disposed of with this consolidated order. IT(SS)A.No.57/Ahd/2009 (Revenue's appeal) 2. The grounds of the appeal of the Revenue are as under: "1. The ld.CIT(A) has erred in law and facts in reducing the penalty levied u/s.271(1)(c) r.w.s. 158BFA(2) .....

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..... 71(1)(c) is clearly attracted in the case of the assessee. He submitted that the expenses were incurred for the education of son of the assessee, which was clearly personal expense and conduct of the assessee was not bona fide. He referred to relevant portions of the penalty order in support of the case of the Revenue. 4. The learned counsel for the assessee has opposed the submissions of the lea .....

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..... hat all the material facts relating to the claim of the educational expenses were disclosed by the assessee in its return of income along with various documents filed before the AO. We find that the department has not taken any ground regarding penalty deleted by the CIT(A) on the issues of claim of depreciation and interest on car loan, and has preferred ground only on the issue of penalty on the .....

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..... enses was not bona fide. It is a case of difference of opinion between the assessee and the Revenue regarding allowability of certain claim of expenses claimed by the assessee, as an allowable deduction out of its taxable income. In these facts of the case, we hold that the penalty levied under Section 271(1)(c) was rightly deleted by the CIT(A) by observing that the expenses were claimed by the a .....

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..... ed Income which is subjected to penalty is relating to expenses disallowed/claimed in the regular return of income & therefore, do not form part of undisclosed income." 7. The learned counsel for the assessee has not pressed these grounds of CO of the assessee, which are accordingly dismissed. 8. In the result, appeal of the Revenue and the CO of the assessee are dismissed. Order pronounced in .....

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