COMMISSIONER OF INCOME TAX Vs. PREETI AGGARWALA
HIGH COURT OF DELHI
COMMISSIONER OF INCOME TAX
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(1.) IN this appeal under Section 260A of the Income Tax Act, 1961 ('Act'), the Revenue is aggrieved by an order dated 16th September, 2005, passed by the Income Tax Appellate Tribunal, New Delhi Bench 'A' (Tribunal) in ITA No. 1684/Del/2002 relevant for the assessment year 1998 -99.
(2.) IN the concluding paragraph of the assessment order, the Assessing Officer recorded as follows: Assessed. Tax as per law and charge interest as applicable. Penalty proceedings Under Section 271(1)(c) have been initiated separately.
On this basis, the Assessing Officer initiated the penalty proceedings against the assessed. These were set aside by the Tribunal, inter alia, in view of the decision of this Court in Commissioner of Income Tax v. Ram Commercial Enterprises Ltd. : 246ITR568(Delhi) . Since the Assessing Officer had not recorded his satisfaction that penalty proceedings should be initiated, the entire exercise conducted by the Assessing Officer in penalty proceedings were held to be vitiated.
(3.) WE may note at this stage that the decision of this Court in Ram Commercial Enterprises Ltd. has been approved by the Supreme Court in Dilip N. Shroff v. Joint Commissioner of Income Tax : 291ITR519(SC) and T. Ashok Pai v. Commissioner of Income Tax : 292ITR11(SC) .;
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