Ashok Bhan, J. - (1.) We propose to dispose of these appeals as has been done by the High Court, by a common order, as the point involved in all these appeals is the same.
(2.) Facts are taken from Civil Appeal No. 7115 of 2005. Commissioner of Income Tax, Delhi-I, the respondent herein, filed ITA No. 340 of 2004 in the High Court of Delhi against the order passed by the Income Tax Appellate Tribunal (for short "the Tribunal") under Section 260A of the Income Tax Act. Assessee also filed ITA No. of 2004 being aggrieved against a part of the order of the Tribunal. High Court allowed the ITA No. 340 of 2004 filed by the Revenue and held that the Tribunal was not right in deleting the penalty imposed under Section 271(1)(c) of the Income Tax Act, 1961 (for short "the Act") merely on the ground that the total income of the assessee was assessed at a minus figure/loss. Tribunal had allowed the assessees appeal remitting the penalty imposed by the assessing officer under Section 271(1)(c) relating to the assessment year 1996-97, relying upon the decision of the Punjab High Court in CIT v. Prithipal Singh & Co. which was affirmed by this Court in CIT v. Prithipal Singh & Co. Civil Appeal No. 1961 of 1996 dated 27.07.2000, reported in, (2001) 249 ITR 670(SC) . In the appeal filed by the Revenue in the High Court of Delhi, the following two questions of law were framed: 1. Whether the ITAT was right in deleting the penalty imposed under section 271(1)(c) of the Income Tax Act, 1961 on the ground that the total income of the assessee has been assessed at a minus figure/loss 2. Whether the ITAT was justified in holding that the judgments in Prithipal Singhs case ,() will apply even after insertion of Explanation 4 to Section 271(1)(c) of the Income Tax Act, 1961 with effect from 1.4.1976
(3.) FACTS (C.A. NO. 7115 OF 2005) For the assessment year 1996-97, the assessee-appellant returned an income of Rs. 1,32,44,507.29 subject to depreciation. The depreciation claimed for the year was Rs.1,47,97,995.01 computed as under: Depreciation for Assessment year Rs. 1,32,44,507.29 1996-97 Unabsorbed depreciation for Rs. 15,53,487.72 Assessment Year 1995-96 Total = Rs. 1,47,97,995.01;