2009 (2) TMI 45

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....gment of the court was delivered by PRAFULLA C. PANT, J. - This appeal, preferred under Section 260 A of Income Tax Act, 1961, is directed against the order dated 19.10.2006, passed by Income Tax Appellate Tribunal, Delhi Bench, "D" Delhi, passed in ITA No. 1651 (Del) of 2004, whereby appeal of the assessee was allowed and penalty imposed is set aside. 2. Heard learned counsel for the parties. ....

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....e assessee unit was exempted under Section 80 P of the Income Tax Act, 1961. However, the Assessing Officer held that though the income of the assessee was deductible under Section 80 P, since the assessee had failed to submit the audit report, it is liable to pay penalty under Section 271 B of the Act. Aggrieved by said order dated 14.11.2002, passed by Assessment Officer for the year 1999-2000, ....

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..... On the other hand, Shri Gopal Narain, learned counsel for the respondent/assessee argued that there was no intention on the part of the assessee to cause any wrongful loss to the revenue, as no tax was payable on the income of the assessee, as such, there was no justification in imposing the penalty under Section 271 B of the Income Tax Act, 1961. 5. Having heard learned counsel for the parties....

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....te Tribunal to conceal the income or to deprive the Government of revenue, as there is no tax payable on the income of the assessee, in view of the provisions of Section 80 P of Income Tax Act, 1961, we are of the view that it was not necessary for the Assessing Officer to impose penalty under Section 271 B of the Act. On going through the impugned order passed by the tribunal, in the above circum....