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Judgment
We have heard both sides and perused the order passed by the Tribunal dated 29th November, 2012, which is impugned in this appeal. The assessment year is 2004-05. The Revenue''s appeal was pertaining to deletion of penalty levied under section 271(1)(c) of the Income Tax Act, 1961. The Commissioner has deleted these penalties and partially. The Revenue was aggrieved by the fact that Commissioner should not have interfered with this levy of penalty as on all grounds viz. provision for doubtful loan of Rs. 1,90,51,000/- and long term capital loss of Rs. 3,06,75,158/- and finally disallowing of expenditure under section 14A in respect of dividends. The assessee had not furnished accurate particulars and thereby clause (c) of subsection (1) of section 271 was attracted.
The Tribunal has completely scrutinised and verified from the Commissioner''s order the reasons why he deleted the penalties.
The Tribunal found that there was no basis for levy of penalty as the point or issue raised was debatable. Merely because a claim which is not sustainable on merits has been raised that does not justify levy of penalty and its imposition, therefore, was set aside. That was also set aside because the Tribunal found that the assessee''s grounds had merit and in substantive/quantum proceedings it agreed with the assessee''s version. In the circumstances, it rightly deleted the penalty imposed.
We do not see any substantial question of law arising from such an order of the Tribunal. It is neither perverse nor vitiated by any error of law apparent on the face of the record. We, therefore, proceed to dismiss this appeal. There shall be no order as to costs.