Commissioner Of Income Tax, Faridabad v. Nathi Ram Dagar

In the High Court of Punjab and Haryana, Chandigarh. ITA No. 797 of 2008 Date of Decision: 29.01.2009 Commissioner of Income Tax, Faridabad ....Appellant. Versus Nathi Ram Dagar ....Respondent. Coram:- Hon'ble Mr.Justice J.S. Khehar Hon'ble Mr. Justice Nawab Singh Present: Mr. Yogesh Putney, Advocate for the appellant. Mr. Avneesh Jhingan, Advocate for the respondent. ... J.S. Khehar, J. (Oral). The Revenue has filed the instant appeal against thedetermination rendered by the Income Tax Appellate Tribunal vide its orderdated 30.11.2007, pressing the following issues: -- “(i) Whether on the facts and in the circumstances of the case,the Hon'ble ITAT has erred in law in confirming the order ofthe Ld. CIT (A) in deleting the penalty of Rs.5,58,175/- on theground that the Assessing Officer has nowhere recorded hissatisfaction for the concealment of particulars or furnishing ofinaccurate particulars of income in respect of the impugnedadditions, when the Assessing Officer had recorded directions for initiation of penalty proceedings u/s 271(1)(c) in theassessment order, in view of sub-section (1B) of Section 271inserted by the Finance Act 2008 with retrospective effect from1.4.1989 ? (ii) Whether on the facts and in the circumstances of the case,the Hon'ble ITAT was right in law in holding that in case ofany debatable issue, penalty provisions are not attracteddisregarding the fact that the assessee concealed particulars ofincome, thus reducing the taxable income?” So far as the first issue is concerned, it is conceded by thelearned counsel for the respondent – assessee, that the question ofsatisfaction raised in the first issue stands decided in favour of the Revenuein Commissioner of Income Tax Vs. M/s. Pearey Lal and Sons (EP) Ltd.(ITA No.221 of 2006, decided on 25.9.2008). Learned counsel for the parties are agreed, that the second issuepressed at the hands of the learned counsel for the appellant remainedundecided on account of the fact, that the Income Tax Appellate Tribunalhad determined the issue of satisfaction in favour of the respondent –assessee. Thus viewed, learned counsel for the parties are agreed, that thecontroversy in the instant appeal limited to the second issue, noticedhereinabove, be remanded back to the Income Tax Appellate Tribunal forfresh determination, in accordance with law. In view of the above, the impugned order dated 30.11.2007rendered by the Income Tax Appellate Tribunal, is hereby set aside. Partiesare relegated to appear before the Income Tax Appellate Tribunal on2.3.2009. 29.01.2009 sk. The instant appeal stands disposed of in the aforesaid terms. ( J.S. Khehar )Judge ( Nawab Singh ) Judge.