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Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1994-95 - Where Commissioner (Appeals) had set aside penalty, without going into merits of issue, matter was remanded to Tribunal to be heard with quantum appeal filed by assessee [Matter remanded] The Assessing Officer on the basis of survey under section 133A found that the assessee had stocks in excess of stock entered in the books of account. The assessee surrendered some of the amounts as additional income to cover up the discrepancies. However, the Assessing Officer made additions to the declared amount. Notice for imposition of penalty was also issued and order of penalty was separately passed. The Commissioner (Appeals) set aside the penalty only on the ground that from the proceedings recorded by the Assessing Officer, the requirement of section 271(1)(c) was not met as it was not recorded that a case of penalty was made out while mentioning that notice for penalty proceedings had been separately issued. Held that the Commissioner (Appeals) had set aside the penalty, without going into the merits of the issue. Since the quantum case was pending, the instant appeal was to be heard with quantum appeal. CASES REFERRED TO CIT v. Munish Iron Store [2003] 263 ITR 484 (Punj. & Har.) and CIT v. Pearey Lal and Sons (EP) Ltd. [2009] 308 ITR 438 (Punj. & Har.). Vivek Sethi for the Appellant. Pankaj Jain for the Respondent. JUDGMENT 1. This appeal has been preferred by the Revenue under section 260A of Income-tax Act, 1961 (for short, "the Act"), against the order of the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar, dated August 3, 2007, passed in I. T. A. No. 381 (ASR)/2006, assessment year 1994-95, proposing to raise the following substantial questions of law : "1.Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in upholding the order of the Commissioner of Income-tax (Appeals) deleting the penalty of Rs. 1,14,770 imposed under section 271(1)(c) of the Income-tax Act, 1961 ? 2.Whether, on the facts and in the circumstances of the case, the ratio of the judgment of the hon'ble Punjab…

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