- (1.) This appeal has been preferred by the Revenue under section 260A of the Income-tax Act, 1961 (in short "the Act"), against the order dated March 27, 2009, passed by the Income-tax Appellate Tribunal, Delhi Bench "D", New Delhi (hereinafter referred to as "the Tribunal"), in I.T.A. No. 1059/Del/2008, relating to the assessment year 1993-94, claiming the following substantial questions of law : I. Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal was right in law in upholding the order of the learned Commissioner of Income-tax (Appeals) in deleting the penalty of Rs. 4,78,640 on the ground of non-recording of satisfaction by the Assessing Officer in the assessment order despite the amendment by the Finance Act, 2008, with effect from April 1, 1989, to clause (1B) below Explanation 7 to section 271(1)(c) of the Income-tax Act, 1961 ? II. Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal was right in law in upholding the order of the learned Commissioner of Income-tax (Appeals) in deleting the penalty of Rs. 4,78,640 on the ground that the additions based on the difference of opinion and there, is no misrepresentation or misstatement of facts in contravention to the judgment of the hon'ble Supreme Court in the case of Union of India v. Dharamendra Textile Processors, 2008 306 ITR 277 (SQ wherein it was held that penalty under section 271(1)(c) of the Income-tax Act, 1961, is a civil liability and the section has been enacted to provide for a remedy for loss of revenue. Wilful concealment is not an essential ingredient for attracting civil liability as in the case in the matter of prosecution under section 276C of the Income-tax Act, 1961 ? III. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in upholding the order of the learned Commissioner of Income-tax (Appeals) in deleting the penalty levied by the Assessing Officer under section 271(1)(c) of the Income-tax Act, 1961, in respect of various additions in the assessee's income which were confirmed by the appellate authorities at all level ? Briefly stated, the facts necessary for adjudication as narrated in the appeal are that the assessee-company filed its return of income on December 30, 1993, for the assessment year 1993-94 declaring an income of Rs. 1,41,72,960. The assessment was completed on March 15, 1996, at a total income of Rs. 1,65,54,940. The Assessing Officer, vide order dated April 29, 2005, levied a penalty of Rs. 4,78,640 on the assessee for furnishing inaccurate particulars of the income. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income-tax (Appeals) (in short "the CIT(A)"). The Commissioner of Income-tax (Appeals), vide order dated January 8, 2008, deleted the said penalty. Against the deletion of penalty, the Department filed an appeal before the Tribunal who, vide order dated March 27, 2009, upheld the order of the Commissioner of Income-tax (Appeals) and dismissed the appeal and this gave rise to the Revenue to approach this court by way of instant appeal.
(2.) We have heard learned counsel for the parties.
(3.) The issue that arises for consideration in this appeal is whether the Tribunal was right in deleting the penalty levied under section 271(1) (c) of the Act.;