2012 (11) TMI 411

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.... R   PER G.C. GUPTA, VICE-PRESIDENT: 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 th....

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....earned DR submitted that Explanation 1 to Section 271(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 fo....

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....ve perused the orders of the AO and the CIT(A). We find that 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....

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....on of the assessee regarding the claim of educational expenses 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 CI....