COMMISSIONER OF INCOME TAX Vs. BALWANT RAI

JUDGEMENT

(1.) THE revenue has filed the present appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the "Income Tax Act") against the order dated 20 -5 -2007 passed by the Income Tax Appellate Tribunal, Delhi Bench "SMC," Delhi (hereinafter called the Tribunal) in ITA No. 3475/Del/2006 for the assessment year 2003 -04, raising the following substantial questions of law:

(2.) WHETHER on the facts and in the circumstances of the case, the learned Tribunal was right in cancelling the penalty on erroneous factual findings?

(3.) STILL dissatisfied with the order of Commissioner (Appeals), Rohtak, the assessee filed further appeal before the Tribunal, who vide its order dated 25 -5 -2007, accepted the appeal and set aside the order of the lower authorities and cancelled the penalty of Rs. 84,155, levied by the assessing officer under Section 271(1)(c) of the Income Tax Act.