The Commissioner Of Income Tax, Faridabad v. M/S Rubber Udyog Vikas Pvt. Ltd

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. I.T.A. No.635 of 2007 Date of decision: 6.11.2008 The Commissioner of Income Tax, Faridabad. Vs. M/s Rubber Udyog Vikas Pvt. Ltd. -----Appellant. -----Respondent CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOELHON'BLE MR JUSTICE L.N. MITTAL Present:-Mr. Yogesh Putney, Sr. Standing Counsel for the appellant. ORDER: Mr. Rajiv Sharma, Advocatefor the respondent. ----- This appeal has been preferred by the revenue underSection 260-A of the Income Tax Act, 1961 (for short, “the Act”) againstorder dated 15.11.2006 passed by the Income Tax Appellate Tribunal,Delhi Bench “I”, New Delhi in I.T.A. No.762/DEL/2005 for theassessment year 1994-95, proposing to raise following substantialquestion of law:- “Whether, on the facts and in the circumstances of thecase the Hon’ble ITAT in upholding the order of Ld. CIT(A)in deleting the penalty levied by Assessing Officer u/s 271(1)(c) when the Assessing Officer had recorded hissatisfaction for initiation of penalty proceedings u/s 271(1)(c) in the assessment order in contravention of the order of the Hon’ble Madras High Court in the case of M. SajjanrajNahar Vs. CIT (283 ITR 230).” Learned counsel for the revenue points out that the saidissue has been gone into by this Court in I.T.A. No.221 of 2006(Commissioner of Income Tax v. M/s Pearey Lal & Sons (EP) Ltd.)decided on 25.9.2008. We have heard learned counsel for the parties. We find that the issue is covered by the earlier judgment ofthis Court inM/s Pearey Lal & Sons (supra). Accordingly, we allow this appeal in the same terms andremand the matter to the Tribunal, on the issue of penalty, for freshdecision in accordance with law. ( ADARSH KUMAR GOEL )JUDGE November 06, 2008ashwani ( L. N. MITTAL ) JUDGE