Income-tax Appeal No.816 of 2008 -1- **** IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Income-tax Appeal No.816 of 2008 Date of decision: 1.2.2011 Aggarwal Engineering Co. ...Appellant Versus The Income Tax Officer-IV(2), Jalandhar (Pb.) ...Respondent CORAM: HON'BLE MR.JUSTICE ADARSH KUMAR GOEL HON'BLE MR.JUSTICE AJAY KUMAR MITTAL Present: Mr. K.L.Goel, Senior Advocate with Mr. Sandeep Goel, Advocate for the appellant. **** ADARSH KUMAR GOEL, J ( Oral) . 1. This appeal has been preferred by the assessee under Section 260-A of the Income Tax Act, 1961 against the order dated 25.4.2008 of the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar in I.T.A. No.438(ASR)/2006 for the assessment year 1996-97 proposing to raise following substantial questions of law:- i) Whether on the facts and circumstances of the case, the ld. ITAT is justified to ignore the fact that no proper satisfaction has been recorded by Assessing Officer to initiate proceedings of penalty and therefore as held by different courts, no valid proceedings of penalty were ever initiated? ii) Whether, on the facts and circumstances of the case, Income-tax Appeal No.816 of 2008 -2- **** the ld. ITAT is justified to reverse the well-reasoned order passed by the CIT, canceling the penalty imposed u/s 271(12)(C) of Assessing Officer on the ground that income has been assessed by Assessing Officer on estimate basis and there is no mensrea on the part of assessee? iii) Whether on the facts and circumstances of the case, the penalty imposed by Assessing Officer as upheld by the Tribunal is liable to be set aside taking into consideration the final decision in the matter relating to assessment of the case by this Hon'ble Court? 2. Learned counsel for the assessee points out that this appeal was deferred till decision of ITA No.478 of 2006 on the issue of quantum. The said appeal along with two other connected appeals as also appeals against orders of penalty i.e. ITA Nos.904 and 948 of 2008 for assessment years 1994-95 and 1995-96 were disposed of by this Court vide order dated 6.12.2010. The matter was remanded to the CIT(A) for fresh decision. 3. In view of above development, this appeal is disposed of in same terms and matter is remanded to the CIT(A) for fresh decision on merits in accordance with law. The appellant may appear before the CIT (A) for further proceedings on 14.2.2011 which is also the date given in other cases. (Adarsh Kumar Goel) Judge February 01, 2011 (Ajay Kumar Mittal) Pka Judge