KRISHNAPADA CHANDA Vs. COMMISSIONER OF INCOME TAX XI

JUDGEMENT

(1.) THE subject matter of challenge in this appeal is a judgment and order dated 18th October, 2004 pertaining to assessment year 1999 -2000 by which the learned Tribunal allowed the appeal preferred by the revenue setting aside the order passed by C.I.T. (Appeals) deleting the penalty imposed upon the assessee. The facts and circumstances of the case briefly stated are as follows;

(2.) IN an appeal preferred by the assessee, the C.I.T. (Appeals) was of the opinion that there was a reasonable cause which led the assessee to took the loan otherwise than by an account payee cheque and, therefore, the penalty should not have been levied. The C.I.T. (Appeals) has obviously taken assistance of section 273B, which provides that no penalty shall be impossible for any failure referred to in section 269SS, if the assessee proves that there was a reasonable cause for the said failure.

(3.) AGGRIEVED by the appellate order, the revenue preferred an appeal which was allowed by the Tribunal, which is under challenge. At the time of admission of the appeal the following questions were formulated; -