COMMISSIONER OF INCOME TAX Vs. VINODKUMAR MAHESHWARI

JUDGEMENT

(1.) All these applications filed by the Revenue under Sec. 256(2) of the Income-tax Act, 1961 relating to the assessment years 1984-85 and 1985-86 were admitted on the questions of law set out in the respective applications.

(2.) The respondents (hereinafter referred to as "the assessee") were partners of M/s. Nav Bharat Press, Nagpur. On dissolution of the said firm amounts credited to the capital accounts in the respective assessment year were claimed by the assessee as capital in nature. The Assessing Officer rejected the claim of the assessee by holding that the receipts were revenue receipts and taxable under Section 176(3A) of the Act. Accordingly, the assessment orders were passed and penalties were levied under Sec. 271(1)(c) of the Act.

(3.) On appeal filed by the assessee, the Commissioner of Income-tax (Appeals) deleted the penalty by holding that there was no concealment of income. Against the said order, the Revenue filed appeals before the Income-tax Appellate Tribunal. The Tribunal by the impugned order without considering the issue of concealment of income deleted the penalty only on the ground that the quantum addition has already been deleted by the Tribunal. Thus the Tribunal has dismissed the appeals filed by the Revenue without considering the grounds raised in the appeal. Even the applications filed by the Revenue under Section 256(1) were rejected.