COMMISSIONER OF INCOME TAX Vs. CHOHAL INVESTMENTS LIMITED

JUDGEMENT

(1.) In these appeals under Section 260-A of the Income Tax Act, 1961 ('Act'), the Revenue is aggrieved by an order dated 8th August, 2005 passed by the Income Tax Appellate Tribunal, Delhi Bench 'C' in ITA Nos. 2425 and 2426/Del/2005 relevant for the assessment years 1995-96 and 1996-97 respectively.

(2.) By the impugned order, the Tribunal allowed the appeals filed by the Assessee challenging the levy of penalty under C of the Act for both years. The penalty was set aside by the Tribunal on the ground that the Assessing Officer had not recorded any satisfaction in the assessment orders regarding the initiation of penalty proceedings against the Assessee.

(3.) On a perusal of the assessment order for the Assessment Year 1995-96, we find that the Assessing Officer has, in regard to initiation of penalty proceedings, observed as follows: