"4. In AY 2005-06 and 2006-07, we notice that the Co-ordinate bench of Tribunal had deleted the penalty levied on identical reasons by following the decision rendered by the Tribunal in the assessee's own case in ITA No. 1000/Mds/2010 relating to the AY 2003-04. We further notice that the Tribunal has expressed the view that the assessee has not concealed any particulars of income or furnished any inaccurate particulars of income by claiming the deduction of amount transferred to Statutory reserves. The Tribunal has further noticed that the assessee had claimed the same on the basis of a legal opinion and also on bonafide and honest belief. Under these set of facts, the Tribunal has deleted the penalty levied in AY 2005-06 and 2006-07 for identical disallowance, by following the decision of Hon'ble Supreme Court in the case of Reliance Petro Products Ltd (322 (TR 158)(SC) and also the decision rendered by Hon'ble Jurisdictional Madras High Court in the case of Caplin Point Laboratories (172 Taxman 279), wherein it was held that the penalty was not leviable on the disallowances made on legal grounds. As already stated, the Ld CIT(Appeals) has followed the decision of the Hon'ble Supreme Court rendered in the case of Reliance Petro Products Ltd (supra) and also the decisions given by the co-ordinate benches of Tribunal in the assessee's own case. Further, we notice that it was not the case of the revenue that the assessee has continued to claim the deduction after the decision of Tribunal on this issue, wherein the Tribunal has confirmed the disallowance. Under these set of facts, we do not find any reason to interfere with the order of Ld CIT (Appeals) on this issue.
