COMMISSIONER OF INCOME TAX Vs. HARDAYAL SINGH (HUF)

JUDGEMENT

(1.) PASSED by the AO. During the course of the assessment proceedings, it was found that the assessee has received interest on FDRs at Rs. 1,28,232 which was not included in the original return filed in response to notice under s. 148 of the Act. The said amount was included in the assessable income of the assessee. While making assessment vide order separately. Notice under s. 274 r/w s. 271 of the Act was issued, asking the assessee to show cause as to why penalty passed by the Asstt. CIT, Karnal Circle, Karnal a penalty of Rs. 82,436 was imposed upon the assessee. The CIT(A), was directed to be deleted.

(2.) AGGRIEVED against the said order, the Revenue filed an appeal before the Tribunal, Delhi Bench 'I', New Delhi. The Tribunal found that penalty was not imposable as there was no conscious breach of law. While dismissing the appeal of Revenue in the conclusion arrived at by the CIT(A).

(3.) THE present appeal under s. 260A of the IT Act, 1961 (the 'Act') has been filed by the Revenue against the order dt. 4330/Del/2005 for the asst. yr. 1996 -97 raising the following substantial questions of law :