COMMISSIONER OF INCOME TAX AND THE ASSISTANT COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION Vs. M/S. MAKINO ASIA PVT. LTD. NOW AMALAGAMATED WITH MAKINO MACHINE TOOLS (INDIA) PVT. LTD.

JUDGEMENT

(1.) This appeal, under Section 260A of the Income Tax Act, 1961, is directed against the order dated 15.09.2006 rendered by the Income Tax Appellate Tribunal, Bangalore, (for short 'the Tribunal') in ITA No. 3026/Bang/2004. By this order, the Tribunal confirmed the order dated 23.07.2004 passed by the Commissioner of Income Tax (Appeals)-IV, Bangalore, (for short "the Appellate Authority") in penalty proceedings under Section 271(1)(c) of the Act, for the Assessment year 2002-03. When hearing of the appeal commenced, we noticed that the substantial questions of law framed in the memorandum of appeal were not happily worded and hence, with the assistance of learned counsel for the parties, we have framed the following questions for consideration and proceeded to hear the appeal on merits:

(2.) The facts that are relevant for deciding the questions of law are as under:--

(3.) At the outset, we would like to reproduce Section 271 of the Act to the extent it is necessary, which reads thus:--