COMMISSIONER OF INCOME TAX II, AMRITSAR Vs. GREAT VALUE FOOD, 93-GROUND FLOOR, NEHRU SHOPPING COMPLEX, AMRITSAR

JUDGEMENT

(1.) This appeal has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 (in short, "the Act") against the order dated 8.10.2008, Annexure A.3 passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar (in short, "the Tribunal") in ITA No.16/ASR/2008, for the assessment year 2004-05, claiming following substantial questions of law:-

(2.) Briefly, the facts necessary for adjudication of the controversy involved, as narrated in the appeal, may be noticed. The assessee firm filed its return of income for the assessment year 2004-05 on 31.10.2004 showing total income of Rs. 3,33,29,720/-. There was a note given in the return that interest under sections 234B and 234C of the Act was liable to be waived.

(3.) Learned counsel for the revenue submitted that the Tribunal was in error in deleting the penalty imposed under section 221(1) of the Act as the assessee had failed to deposit the interest under sections 234B and 234C of the Act. According to the learned counsel, the payment was made on 28.6.2006 for the assessment year 2004-05 and therefore, the Assessing Officer and the CIT(A) had rightly imposed the penalty on the assessee. Support was drawn from judgment of the Kerala High Court in E.K.Varghese and another v. Income Tax Officer and others, 1974 96 ITR 577.