RAKESH KUMAR GARG, J. - (1.) THE Revenue has filed the present appeal under s. 260A of the IT Act, 1961 (hereinafter referred to as the "IT Act") called the Tribunal) in ITA No. 592/ Chd/2006 for the asst. yr. 2004 -05, raising the following substantial question of law : "Whether on the facts and in the circumstances of the case, the learned Tribunal was right in upholding the order of the CIT(A), against imposition of penalty under s. 271(1)(c) of the IT Act, 1961, without deliberating upon, discussing and analysing the reasons, as spelt out and discussed in para 4 of the penalty order and relying on the afterthought considered by the learned CIT(A), while deleting the penalty imposed under s. 271(1)(c) of the IT Act - under s. 143(1) of the IT Act. The case was picked up for scrutiny and it was found that the assessee had claimed profit assessee was asked to explain why he claimed profit exempted under s. 10(36) of the IT Act when he had purchased that profit on the sale of these shares was exempt under s. 10(36) of the IT Act and nothing in this regard has been concealed by him and this bona fide belief was based on the advice of his counsel. However, the AO did not accept the contention of the assessee and held that a wrong claim was made by the assessee by furnishing inaccurate particulars of additions were made on this account and penalty proceedings were initiated separately against the assessee. A penalty of Rs. 3,10,716 was imposed upon the assessee, under s. 271(1)(c) of the IT Act, by Asstt. CIT, Circle Kurukshetra, vide 2006, partly allowed the appeal and reduced the penalty to Rs. 2,87,133.
(2.) NOT feeling satisfied with the order of CIT(A), the Revenue filed an appeal before the Tribunal on the ground that the assessee had wrongly claimed exemption under s. 10(36) of the IT Act as the said provisions were not applicable to the facts of the assessee's case and therefore, he had concealed his income by furnishing inaccurate particulars and appeal of the Revenue Department.
(3.) STILL dissatisfied with the order of Tribunal, the Revenue has filed the present appeal. We have heard learned counsel for the appellant Revenue and perused the record.;