COMMISSIONER OF INCOME TAX Vs. NEPC TEXTILES LTD

JUDGEMENT

(1.) THE above tax case appeal is directed against the order of the Income-tax Appellate Tribunal dated 12. 5. 2006 made in ita No. 1673/mds/2002 for the assessment year 1996-97.

(2.) THE Revenue is the appellant. The issue raised in this appeal relates to the assessment year 1996-97. The assessee company filed its return of income disclosing a loss of Rs. 3. 59 crores. On completion of assessment, the assessing officer reduced the loss to Rs. 87. 93 lakhs and treated the reduction of loss being difference arising on account of undisclosed income. The assessing officer also passed an order under Section 271 (1) (c) of the Act levying penalty of Rs. 89. 64 for concealment of income. Aggrieved by the order imposing penalty, the assessee filed an appeal before the Commissioner of Income-tax (Appeals), who cancelled the penalty and allowed the assessee's appeal. On appeal at the instance of the Revenue, the Income-tax appellate Tribunal dismissed the appeal by holding that penalty cannot be levied under Section 271 (1) (c) where the assessed income was loss. Hence, this appeal by the Revenue raising the following questions of law:-" Whether in the facts and circumstances of the case, the Tribunal was right in cancelling the penalty under sec. 271 (1) (c) of the Income Tax Act, 1961 on the ground that the total assessed income of the assessee was only a loss ? "

(3.) MRS. PUSHYA Sitaraman, learned Senior Standing counsel appearing for the appellant fairly concedes that the issues raised in this appeal is already decided by this court in COMMISSIONER OF INCOME-TAX v. A. HARIHARAN, [2006] 282 ITR 607.