COMMISSIONER OF INCOME TAX Vs. INSILCO LTD

JUDGEMENT

(1.) The present appeal has been filed under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as "Act, 1961") challenging the order dated 10th July, 2009 passed by the Income Tax Appellate Tribunal (for brevity "Tribunal") in ITA No. 2811/Del/2008 for the Assessment Year 1998-99.

(2.) Mr. Sanjeev Sabharwal, learned senior standing counsel for the Revenue submitted that the Tribunal had erred in law in deleting the penalty of '5,98,899/- levied by the Assessing Officer under Section 271(1)(c) of Act, 1961.

(3.) However, upon a perusal of the file we find that the said penalty was deleted both by the Commissioner of Income Tax (Appeals) and the Tribunal on the ground that the issue involved in the quantum proceeding was a debatable one and further that the respondent- assessee had neither concealed the particulars of income nor furnished inaccurate particulars of income. In fact, the Tribunal in its impugned order has observed as under :-