COMMISSIONER OF INCOME TAX Vs. SARAYA INDUSTRIES LTD.

JUDGEMENT

(1.) By the Tribunal, Delhi Bench 'F', in ITA No. 822/Del/1999 relevant for the asst. yr. 1992 -93.

(2.) BY the order under appeal, the Tribunal allowed the appeal filed by the assessee challenging the levy of penalty under s. 271(1)(c) of the Act. The penalty was set aside by the Tribunal on the ground that the AO had not recorded any satisfaction in the assessment order regarding the concealment of income or for furnishing inaccurate particulars by the assessee.

(3.) MS . Sonia Mathur, learned junior standing counsel for the Revenue, submits that in CIT vs. Ram Commercial Enterprises Ltd. (2001) 167 CTR (Del) 321 : (2000) 246 ITR 568 (Del), this Court has taken the view that if the AO does not record his satisfaction in the assessment order that penalty proceedings should be initiated against the assessee the subsequent order levying penalty would be bad in law. However, she says that another Bench of this Court has in CIT vs. Rampur Engg. Co. Ltd. & Ors. (2006) 204 CTR (Del) 149 : (2006) 155 Taxman 223 (Del) referred the following substantial question of law to a larger Bench which according to the referring Bench was not considered in Ram Commercial Enterprises Ltd.'s case (supra) :