IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.A. No.478 of 2010 Date of decision: 1.11.2010 Commissioner of Income Tax. -----Appellant. Vs. N.K. Singla. -----Respondent CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE RAKESH KUMAR JAIN Present:- Ms. Urvashi Dhugga, Advocate for the appellant. --- ADARSH KUMAR GOEL, J. This appeal has been preferred by the revenue under Section 260-A of the Income Tax Act, 1961 (for short, “the Act”) against the order dated 28.8.2009 of the Income Tax Appellate Tribunal, New Delhi in I.T.A. No.713/Del/09 for the assessment year 1998-99 proposing to raise following substantial questions of law:- I. “Whether, on the facts and in the circumstances of the case, the Ld. ITAT was right in law in upholding the order of the Ld. CIT(A) in deleting the penalty of Rs.16,00,000/- levied by the Assessing Officer u/s 271(1)(c) of the Income Tax Act, 1961 even though the penalty was levied in respect of additions which were confirmed by the Ld. CIT(A) as well as the Ld. ITAT itself?” II. “Whether, on the facts and in the circumstances of the case, the Ld. ITAT was right in law in upholding the order of the Ld. CIT(A) in deleting the penalty of Rs.16,00,000/- levied by the Assessing Officer u/s 271(1)(c) of the Income Tax Act, 1961 on the ground that the assessee had the bona fide belief as to the taxability of I.T.A. No.478 of 2010 enhanced compensation and interest thereon disregarding the fact that breach of a civil obligation attracts levy of penalty whether the contraventions was made by the defaulter with any guilty intention or not as willful concealment is not an essential ingredient for attracting civil liability as in the matter of prosecution u/s 276C as held by the Hon’ble Supreme Court in the case of Union of India & others vs Dharmendra Textile Processors & others reported in 306 ITR 277 (SC)?” Learned counsel for the revenue fairly states that the matter is covered against the revenue by order of this Co[urt dated 15.7.2010 in I.T.A. No.16 of 2010 CIT v. Fateh Sigh (HUF). Accordingly, this appeal is dismissed. (ADARSH KUMAR GOEL) JUDGE November 01, 2010 (RAKESH KUMAR JAIN) ashwani JUDGE 2