COMMISSIONER OF INCOME-TAX Vs. KRISHNA SARAF

JUDGEMENT

(1.) THE Revenue filed these appeals against the order of the Income Tax Appellate Tribunal, Chennai Bench "C", made in I.T.A. Nos.2457 & 2172/Mds/2007 dated 30.6.2006.

(2.) IN these two appeals, the substantial questions of law which arise for consideration are, (i) whether on the facts and circumstances of the case, the Tribunal was right in holding that the penalty under Section 271(1)(c) cannot be levied?, (ii) whether on the facts and circumstances of the case, the issue of claim of interest under Section 132B(4)(a) can be considered in a rectification petition under Section 154?, and (iii) whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is entitled for interest under Section 132B(4)(a) when there was no search under Section 132 in the assessee's premises?

(3.) THAT apart, as against the levy of penalty, the respondent assessee approached the Commissioner of Income-tax Appeals independently, and, by order dated 8.8.2007, the first appellate authority took the view that even going by the order of assessment, there being no concealment nor undisclosed income, the levy of penalty under Section 271(1)(c) was uncalled for and set aside that part of the order. The Tribunal, by the impugned common order dated 30.6.2008, having confirmed the above referred to orders of the first appellate authority, the Revenue has come forward with these two appeals.