- (1.) This appeal under Section 260A of the Income-tax Act, 1961 is at the instance of an assessee and is directed against an order dated 8th August, 2005, passed by the Income-tax Appellate Tribunal, "D" Bench, Kolkata, in ITA No.283/Kol/2005 for the Assessment Year 1998-99 allowing an appeal filed by the Revenue against the order of CIT (Appeals) by which the CIT (Appeals) set aside an order of imposition of penalty under Section 271(1)(c) of the Income-tax Act amounting to Rs.5,52,00,300/-.
(2.) Being dissatisfied, the assessee has come up with the present appeal under Section 260A of the Act.
(3.) A Division Bench of this Court at the time of admission of this appeal formulated the following two substantial questions of law: "(i) Whether the purported finding of the Tribunal that the claim made by your petitioner in the revised return for deduction under Section 80HHC of the Act in respect of the foreign flight catering business was not bona fide or that the said claim was found to be false in assessment proceeding are perverse and based on no material whatsoever. "(ii) Whether making a claim of deduction under Section 80HHC of the Act in the revised return in respect of the foreign flight catering business could attract the penalty under Section 271(1)(c) of the Act and imposition of such penalty is sustainable in law.";