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[2007] 165 Taxman 593 (Delhi)/[2009] 309 ITR 134 (Delhi) [2007] 165 TAXMAN 593 (DELHI) HIGH COURT OF DELHI Commissioner of Income-tax* v. Bharat Hotels Ltd. MADAN B. LOKUR AND DR. S. MURALIDHAR, JJ. IT APPEAL NOS. 935 AND 1074 OF 2006 SEPTEMBER 14, 2007 Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment years 1995-96 and 1996-97 - Whether where even on a detailed perusal of assessment order no satisfaction of Assessing Officer that penalty proceedings were required to be initiated against assessee under section 271(1)(c) was discernible, penalty proceedings could be sustained - Held, no CASES REFERRED TO CIT v. Ram Commercial Enterprises Ltd. [2000] 246 ITR 568/ 122 Taxman 620 (Delhi) [Para 3], Dilip N. Shroff v. Jt. CIT [2007] 291 ITR 519/ 161 Taxman 218 (SC) [Para 3], T. Ashok Paiv. CIT [2007] 292 ITR 11/ 161 Taxman 340 (SC) [Para 3], CIT v. Indus Valley Promoters Ltd.[2006] 155 Taxman 223 (Delhi) (LB) [Para 5] and Virtual Soft Systems Ltd. v. CIT [2007] 289 ITR 83/ 159 Taxman 155 (SC) [Para 10]. Ms. P.L. Bansal for the Applicant. C.S. Aggarwal and Prakash Kumar for the Respondent. ORDER 1. These appeals under section 260(A) of the Income-tax Act, 1961 ('Act') are directed against the common order dated 30-11-2005 passed by the Income-tax Appellate Tribunal ('Tribunal') Delhi Bench "A", New Delhi in ITA Nos. 3673 and 3674 (Delhi) of 2001 for the assessment years 1995-96 and 1996-97 respectively. 2. By the impugned order, the Tribunal dismissed the appeals filed by the revenue questioning the order dated 21-6-2001 passed by the Commissioner of Income-tax ['CIT(A)'] deleting the penalty levied on the assessee by the Assessing Officer under section 271(1)(c) of the Act for the assessment years in question. 3. The Tribunal has dismissed the appeals on two grounds. The first is that the assessment order indicates no satisfaction by the Assessing Officer that the penalty proceedings should be initiated against the assessee. Following the of this Court in CIT v. Ram Commercial Enterprises Ltd. [2000] 246 ITR 5681 which has been since approved by the Supreme Court in Dilip N. Shroffv. Jt. CIT [2007] 291 ITR 5192 and T.…

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