2010 (8) TMI 1048

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.... Sabharwal, learned counsel for the revenue, and Mr.Ajay Vohra, learned counsel for the assessee. The present appeal preferred under Section 260A of the Income Tax Act, 1961 (for brevity ?the Act?) is admitted on the following substantial question of law: "Whether the Income Tax Appellate Tribunal is justified in deleting the penalty of Rs. 17,84,593/- imposed by the assessing officer ....

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....the ground that the issue relating to Section 14A was a debatable one and, therefore, the benefit should go in favour of the assessee. Grieved by the aforesaid order, the revenue preferred an appeal before the tribunal. The tribunal referred to the order passed by the first appellate authority and noted the decision rendered in Mimosa Investment Co. (P) Ltd. v. ITO, 28 SOT 470 (Mumbai) and expr....

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....ee was to retain control and the same was obviously earning of the dividend on account of this holding is incidental. It is urged by him that the assessee has preferred an appeal against the determination of quantum and if the said finding remains intact in this appeal, the revenue may face difficulties in the quantum appeal. At this juncture, Mr. Vohra, learned counsel for the assessee, submitted....