SHREM WATI Vs. S K PLASTICS

JUDGEMENT

(1.) These appeals under Section 260(A) of the Income Tax Act, 1961 ('Act') are directed against the common order dated 30th November, 2005 passed by the Income Tax Appellate Tribunal ('Tribunal') Delhi Bench 'A', New Delhi in ITA No. 3673 and 3674/Del/01 for the Assessment Years 1995-96 and 1996-97 respectively.

(2.) By the impugned order, the Tribunal dismissed the appeals filed by the Revenue questioning the order dated 21st June, 2001 passed by the Commissioner of Income Tax ['CIT(A)'] deleting the penalty levied on the Assessee by the Assessing Officer under Section 271 (1)(c) of the Act for the assessment years in question.

(3.) The Tribunal has dismissed the appeals on two grounds. The first is that the assessment order indicates no satisfaction by the Assessing Officer that the penalty proceedings should be initiated against the Assessee. Following the judgment of this Court in Commissioner of Income Tax v. Ram Commercial Enterprises Limited [2000] 246 ITR 568 which has been since approved by the Supreme Court in Dilip N. Shroff v. Joint Commissioner of Income Tax [2007] 291 ITR 519 (SC) and T. Ashok Pai v. Commissioner of Income Tax [2007] 292 ITR 11 (SC), the Tribunal held against the Revenue on this ground and upheld the order of the CIT(A).