- (1.) Heard learned Counsel for the appellant Sri Pradeep Agarwal and Sri P. J. Pardiwalla, learned Counsel for the respondents.
(2.) This appeal under Section 260A of Income-tax Act, 1961 has been filed by the Revenue challenging the order passed by the Commissioner of Income-tax (Appeals) as well as by the Income-tax Appellate Tribunal, by means of which the penalty imposed under the Interest-tax Act by the assessing authority has been set aside.
(3.) The admitted facts as emerged from the record and stated by learned Counsel for the parties are that the assessee-financial company was required to file a return up to December 31, 1995. Since the return was not furnished a notice under Section 10(a) of the Act was issued to the assessee on April 15, 1996, requiring it to furnish a return of chargeable interest within 30 days. But finding failure on the part of the assessee which did not comply with the aforesaid direction, a second notice was issued on September 24, 1996. The assessee-company filed a return on October 31, 1996. The company has shown an amount of Rs. 46,13,91,700 as total chargeable interest whereas the assessment was made under Section 8(2) of the Act on February 4, 1997, determining the chargeable interest at Rs. 50,44,91,718.;