NARENDRA KUMAR JAIN,J. - (1.)HEARD the learned counsel for the appellant.
(2.)THE Revenue has preferred this Income Tax Appeal under Section 260A of the Income Tax Act against order dated 27th November, 2009 passed by the Income Tax Appellate Authority, Jaipur Bench 'B', Jaipur, whereby appeal filed by revenue, against order of first appellate authority deleting the penalty levied under Section 271(1)(c) of the Act of Rs.10,87,752.00 has been dismissed.
Briefly stated the facts of the appeal are that Assessing Officer passed an order dated 4.6.2008 under Section 271(1)(c) of the Income Tax Act levying penalty of Rs.10,87,752.00 on the following alleged concealed particulars of income and thereby furnishing inaccurate particulars of income :-

(i) Trading addition on application of N.P rate of 8% subject to further deduction on a/c of Interest and Remuneration paid to partners (6268288-4295681) Rs.19,72,607.00 (ii) Unexplained cash credit u/s 68 in the name of three partners @ Rs.3 lac each Rs. 9,00,000.00 (iii) Interest disallowed on the unexplained Capital introduced by the partners Rs. 1,00,000.00 Total Rs.29,72,607.00

(3.)BEING aggrieved with the aforesaid penalty order, the assessee preferred an appeal, which was allowed by Commissioner of Income Tax (Appeals)-III, Jaipur vide order dated 23.1.2009 and penalty levied by Assessing Officer was set aside. Thereafter, revenue preferred an appeal before Income Tax Appellate Tribunal, which was dismissed by Tribunal vide order dated 27th November, 2009. Hence, revenue has now preferred this appeal before this Court.