SHEETAL DIAMONDS LTD Vs. INCOME TAX APPELLATE TRIBUNAL

JUDGEMENT

(1.) Petitioner assessee has challenged an order dated 5th Sept., 2018 passed by the Income Tax Appellate Tribunal ("the Tribunal" for short) by which the application of the revenue for rectification of the Tribunal's judgment dated 28th July, 2015 came to be allowed.

(2.) Brief facts are as under: Petitioner assessee is a company. The petitioner had filed a return of income for the assessment year 2001-02 declaring loss of Rs. 3.67 crores (rounded off). The Assessing Officer passed the order of assessment assessing the assessee's income for the said assessment year at Rs. 34.63 lakhs (rounded off). This issue eventually reached the Tribunal. The Tribunal by an order dated 22nd Aug., 2008 reduced the assessee's income to Nil. In this order, the Tribunal confirmed the Assessing Officer's view of rejecting the book result, but did not find any basis for applying net profit rate of 10%. This judgment of the Tribunal has achieved finality.

(3.) The department instituted penalty proceeding. The Assessing Officer imposed penalty of Rs. 13.69 lakhs on the basis of the escaped income of Rs. 34.63 lakhs. The commissioner appeals, however, enhanced the penalty on the ground that the concealment can be stated to be of the difference between the stated loss and the assessed income. In further appeal the Tribunal passed an order and deleted the penalty making following observations: