- (1.) Present appeal has been filed by the assessee-appellant under Section 260-A of Income Tax Act, against the judgment and order dated 28.09.2007 passed by the Income Tax Appellate Tribunal, Lucknow, in ITA No.507/Luc/07.
(2.) On 26.03.2008, a Coordinate Bench of this Court has admitted the appeal on substantial questions of law (i) and (iii), which are reproduced as under:- (i) Whether on a true and correct interpretation of the section 275 of the Act, the Tribunal was legally correct in holding that the penalty order dated 28.09.2006 had been passed within the limitation period as prescribed thereunder, and in upholding the validity thereof? (iii) Whether on a true and correct interpretation of the provisions of section 271 (1) (c), the Tribunal was legally correct in holding that the assessee's case fall within the said penal provisions and in upholding the levy of penalty thereunder?
(3.) The brief facts of the case are that during the assessment year under consideration, the assessee-appellant was engaged in the business of civil contract in his proprietary set up under the name and style 'M/s Naresh Chandra & Engineers'. The original return was filed on 31.10.1992, declaring therein income amounting to Rs.81,340/=. After the notice, on 24.03.1995, the assessment was completed under Section 143(3) of the I.T.Act, on a total income Rs.9,77,190/= by rejecting the books of account under section 145 of the Income Tax Act. Aggrieved with the order, assessee-appellant filed the first appeal, where a partial relief of Rs.94,426 was allowed to the appellant. Thus, the net income was worked out to Rs.8,82,760/=. In Second Appeal, the Tribunal has set aside the order and remanded the matter back to the A.O.;