- (1.) Heard Sri Manish Mishra, Advocate, for appellant and Sri Pradeep Agarwal, Advocate, for respondent.
(2.) This appeal under Section 260A of Income Tax Act, 1961 (hereinafter referred to as "Act, 1961") has arisen from judgment and order dated 29.02.2008 passed by Income Tax Appellate Tribunal, Lucknow Bench 'B', Lucknow (hereinafter referred to as "Tribunal") in Income Tax Appeals No. 321/Luc/2006 and 175/Luc/2006, relating to Assessment Year 1984-85 (hereinafter referred to as "A.Y."). It was admitted on 16.09.2009 by another Division Bench on substantial questions of law formulated in the memo of appeal, which are as under: (I) Whether on the facts and in the circumstances of the case, Tribunal was right in law in deleting penalty imposed under Section 271(1)(c) of Act, 1961 by holding that limitation to impose penalty had expired notwithstanding the fact that this ground was never taken earlier by Assessee. (II) Whether on the facts and in the circumstances of the case, Tribunal was justified in holding that imposition of penalty was time barred in respect of those issues which had become final on the basis of an earlier order thereby implying that penalty is to be imposed in piecemeal as and when the individual issues of an assessment are concluded. (III) Whether on the facts and in the circumstances of the case, Tribunal was justified in law in deleting the penalty under Section 271(1)(c) by holding that there was no concealment of income while at the same time admitting in its order that there was substantial difference in the assessed income and the returned income. (IV) Whether on the facts and in the circumstance of the case, Tribunal has erred in law in deleting penalty levied under Section 271(1)(c) Explanation-1 against the additions made on account of delayed payments of statutory deductions to Government under Section 43B when additions in quantum appeal were confirmed."
(3.) Facts in brief are that respondent-Assessee, U.P. State Bridge Corporation Limited (hereinafter referred to as "Assessee") is a Company registered under Companies Act, 1956 (hereinafter referred to as "Act, 1956"), owned by State of U.P. and therefore a State Government Company. It is engaged in construction of bridges and other buildings.;