COMMISSIONER OF INCOME TAX Vs. IFCI LIMITED

JUDGEMENT

(1.) In this appeal under Section 260A of the Income Tax Act, 1961 (for brevity "the Act"), the revenue has called in question the legal sustainability of the order dated 31st October, 2008 passed by the Income Tax Appellate Tribunal (for short "the tribunal") in ITA 4664/Delhi/2007.

(2.) At the very outset, it is apposite to note that the tribunal was dealing with two appeals, one preferred by the assessee which pertained to assessment year 1996-97 and the other preferred by the revenue, i.e. ITA No. 4507/Delhi/2007 which related to assessment year 1998-99.

(3.) In the appeal preferred by the assessee, the only issue that emerged for consideration before the tribunal pertained to confirmation of penalty in respect of investments written off. The said claim was disallowed by the Assessing Officer. In course of assessment proceedings, the Assessing Officer initiated a penalty proceeding under Section 271(1)(c) of the Act. The amount of investment written off was disallowed by the Assessing Officer and the same was affirmed up to the level of the tribunal.