Commissioner of Income Tax vs Anupam Gupta

Notice had been issued to the respondent pursuant to our order dated 5.9.2008. The service report indicates that the respondent has been served. Nobody appears for the respondent. This appeal is directed against the order dated 27.12.2007 passed by the Income Tax Appellate Tribunal in ITA 2391/del/06 pertaining to the assessment year 2001-02. The only ground on which the Tribunal allowed the assessee''s appeal was that the/satisfaction had not been recorded by the Assessing Officer in the assessment order and, therefore, the penalty u/s 271(1)(c) of the Income Tax Act, 1961 was not sustainable in view of the decision of this Court in Commissioner of Income Tax Vs. Ram Commercial Enterprises Ltd., . Because of the amendment to Section 271 brought about by the Finance Act, 2008 w.e.f. 1.4.1989 by insertion of new sub-Section 1(B), the matter would have to be remanded for a decision on merits. Accordingly, we set aside the impugned order and remand the matter to the Tribunal for a decision on merits. The appeal stands disposed of accordingly.