Sanjiv Khanna, J. - (1.)This appeal preferred by the Revenue impugns order dated 3rd September, 2004 passed by the Income Tax Appellate Tribunal (for short "the Tribunal") in ITA No. 903/Del/2003 in the case of Pawan Kumar Jain versus Assistant Commissioner of Income Tax. The appeal relates to Assessment Year 1999-2000.
(2.)By the impugned order, the Tribunal has deleted penalty of Rs.21,47,019/- imposed by the Assessing Officer under Section 271D of the Income Tax Act, 1961 (for short "the Act").
(3.)By order dated 12th July, 2006, present appeal was admitted for hearing on the following substantial question of law:
"Whether the Tribunal was right in law in deleting the penalty of Rs.21,47,019/- levied under Section 271D of the Income Tax Act by holding that the amount in issue was not a loan within the meaning of Section 269SS of the Act""