THE COMMISSIONER OF INCOME TAX 8, ROOM NO.214, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400 020 Vs. M/S. ORYX FINANCE AND INVESTMENT PVT. LTD. LOK BHARATI COMPLEX, MAROL MAROSHI ROAD, ANDHERI (EAST), MUMBAI - 400 059 PAN : AAACO0662K

JUDGEMENT

(1.) Admit. Taken up for final hearing with the consent of the learned counsel for the parties.

(2.) The Revenue has assailed the judgment and order of the Tribunal thereby partly allowing the appeal filed by the Revenue against the judgment and order of the Commissioner (Appeals).

(3.) The Income Tax Return of the Respondent Assessee was processed under Sec. 143(1) of the Income Tax Act (for sake of brevity hereinafter referred to as "the Act"), demand was raised for Rs.1,64,90,573/- and penalty of Rs.1,19,30,677.00 was imposed by the Assessing Officer under Sec. 221(1) of the Income Tax Act for default by Assessee in the payment of demand. Aggrieved thereby the Assessee filed Appeal before the Commissioner of Income-Tax (Appeals)17, Mumbai [for short "CIT(A)"]. The CIT(A) under its order dated 15/03/2010 deleted the penalty imposed by the Assessing Officer holding that interest component has to be excluded while levying penalty under Sec. 221(1) and since the penalty levied exceeded the tax component, it setaside the order levying penalty. Aggrieved thereby the Department filed a appeal before the Income Tax Appellate Tribunal, Mumbai [for short "ITAT"]. The ITAT held that while levying penalty under Sec. 221(1) of the Act interest component is not to be considered and remitted the matter to the Assessing Officer with the direction to quantify the amount of penalty in accordance with provisions of Sec. 221(1) of the Act. The Department has assailed the said order in the present appeal.