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Section 271(1)(c), read with section 260A, of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1985-86 - Penalty was imposed for alleged failure on part of assessee to explain source of loan raised in assessment year 1984-85 - Tribunal found that said loan was taken by means of bank drafts and encashed through banking channels and loans raised against pro-notes were duly confirmed by party - Whether mere fact that addition sustained in assessment year 1985-86 on account of said loan was not challenged by assessee did not ipso facto show that assessee had furnished inaccurate particulars of income and penalty could be sustained on basis of Tribunal's order in quantum appeal - Held, yes - Whether as there was no perversity in Tribunal's order confirming deletion of penalty and no question of law also arose, appeal was liable to be dismissed - Held, yes Sanjeev Sabharwal for the Appellant. C.S. Aggarwal, Salil Aggarwal and Prakash Kumar for the Respondent. ORDER 1. This appeal under section 260A of the Income-tax Act, 1961 by the Revenue is directed against the order, dated 14 February, 2002 passed by the Income-tax Appellate Tribunal, Delhi Bench 'A', Delhi in IT Appeal No. 1185 (Delhi) of 1994. The Revenue has proposed the following questions, stated to be substantial questions of law : "1. Whether ITAT was correct in law in deleting penalty for an amount of Rs. 3,16,601 levied under section 271(1)(c) ? 2. Whether order of the ITAT deleting penalty under section 271(1)(c) was perverse in view of the admission of assessee that amount received from alleged source at Bombay were not directly traceable to her ?" 2. The only issue which arises for consideration in the present appeal is whether the Tribunal was justified in confirming the order passed by the Commissioner of Income-tax (Appeals), deleting penalty levied on the assessee under section 271(1)(c) of the Act. The…

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