COMMISSIONER OF INCOME TAX Vs. SARAYA INDUSTRIES LTD

JUDGEMENT

(1.) THE Revenue is aggrieved by an order dated 8th June, 2006 passed by the Income Tax Appellate Tribunal, Delhi Bench 'B', New Delhi in ITA No.1886/Del/2003 relevant for the assessment year 1990-91.

(2.) THE grievance of the Revenue relates to the deletion of penalty by the Commissioner of Income Tax (Appeals) as well as by the Income Tax Appellate Tribunal. The penalty was imposed by the Assessing Officer under Section 271(1) (c) of the Income Tax Act, 1961 (for short the Act).

(3.) THE Commissioner reversed the Assessing Officer by holding that the Assessee had not furnished inaccurate particulars. At best, it was a case of rejection of the Assessee's explanation for a claim of depreciation and, therefore, the case would not be covered by Section 271(1)(c) of the Act.