2007 (9) TMI 259

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....T 1. In this appeal under section 260A of the Income-tax Act, 1961 ("the Act"), the Revenue is aggrieved by an order dated February 17, 2006, passed by the Income-tax Appellate Tribunal, Delhi Bench "G" in I.T.A. No. 2747/Del/2005 relevant to the assessment year 2001-02. 2. By the order under appeal, the Tribunal allowed the appeal filed by the assessee challenging the levy of penalty under ....

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....terprises Ltd. [2000] 246 ITR 568 (Delhi) ?" 5. Filing of paper book is dispensed with. The appeal is taken up for final hearing with the consent of learned counsel. 6. At the outset, we may notice that the view expressed by this court in Ram Commercial Enterprises Ltd., that the failure on the part of the Assessing Officer to record his satisfaction in the assessment order vitiates the pena....

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....enior standing counsel for the Revenue submits that the aforementioned portion of the assessment order indicates the satisfaction of the Assessing Officer and that, therefore, this was not a case where the dictum of Ram Commercial Enterprises Ltd. would apply. He submits that this matter should be remanded to the Tribunal for a decision on the merits. 9. Learned counsel for the assessee submitt....

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....We are of the view that the Tribunal erred in coming to the conclusion that the Assessing Officer had not recorded his satisfaction about the initiation of the penalty proceedings and in applying the decision in Ram Commercial Enterprises Ltd. to the facts of the present case. The Tribunal ought to have decided the issue on the merits. 12. We, accordingly, answer the question in the negative, i....