TMI Blog2005 (5) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... e order of the Commissioner of Income-tax (Appeals) deleting the penalty, therefore, this issue is not open for adjudication by us, but, on the facts and circumstances of the case, we do not find any error in the order of the Tribunal restricting the amount of penalty to the extent of the amount deductible considering the intent of the Legislature by introducing the Finance (No. 2) Act, 1991, by which the proviso has been added with effect from October 1, 1991, restricting the amount of penalty to the amount of tax deductible only - - - - - Dated:- 6-5-2005 - Judge(s) : R. K. AGRAWAL., RAJES KUMAR. JUDGMENT The Income-tax Appellate Tribunal, Allahabad, has referred the following question of law under section 256(2) of the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al one and hence in view of the decision of the hon'ble Supreme Court reported in Hindustan Steel Ltd. v. State of Orissa [1972] 83 ITR 26, for such a default penalty is not imposable. Under these circumstances, I, therefore, hold that the appellant had a reasonable cause in both the years and hence penalty of Rs. 51,000 and Rs. 14,500 so imposed on it respectively for the assessment years 1989-90 and 1990-91 are hereby cancelled." The Revenue filed appeal before the Tribunal. The Tribunal allowed the appeal in part and levied the penalty to the extent of the amount deductible. In this regard, the Tribunal held as follows: "In I.T.A. No. 1937 (Alld.) of 1992 vide order dated April 28, 1995, the Tribunal has taken a view that the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the penalty treating the default as of technical nature. Since the Tribunal has set aside the order of the Commissioner of Income-tax (Appeals) deleting the penalty, therefore, this issue is not open for adjudication by us, but, on the facts and circumstances of the case, we do not find any error in the order of the Tribunal restricting the amount of penalty to the extent of the amount deductible considering the intent of the Legislature by introducing the Finance (No. 2) Act, 1991, by which the proviso has been added with effect from October 1, 1991, restricting the amount of penalty to the amount of tax deductible only. There appears to be no revenue loss or any mala fide intention on the part of the assessee. In the result, we answer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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