IN THE HIGH COURT OF DELHI AT NEW DELHI 
 . 
  18.12.2008 
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 Present:        Ms Prem Lata Bansal, Mr Mohan Prasad Gupta, Mr Sanjeev Rajpal 
 and Ms Anshul Sharma, Advocates for the Appellant. 
 Mr Santosh K. Aggarwal, Advocate for the Respondent 
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 +  ITA  1388/2008 
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 This appeal is directed against the order dated 11.01.2008 passed by the 
 Income Tax Appellate Tribunal in ITA No 4771/Del/05 relating to the assessment 
 year 1994-95.  The Tribunal has decided in favour of the assessee following the 
 decision of this Court in the case of CIT vs Ram Commercial Enterprises Ltd: 246 
 ITR 568 (Del.) on the ground that the satisfaction was not recorded in the 
 assessment order for initiating penalty proceedings under Section 271(1)(c) of 
 the Income Tax Act, 1961.  The Tribunal, however, has not expressed any opinion 
 on merits. 
 In view of the insertion of sub-Section (1B) in Section 271 of the said 
 Act by virtue of the Finance Act, 2008 w.e.f. 1.4.1989, the matter would require 
 to be remanded back to the Tribunal for a decision on merits.  The impugned 
 order is set aside.  The matter is remitted to the Tribunal for a decision on 
 merits. 
 The appeal stands disposed of. 
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 BADAR DURREZ AHMED, J 
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.
 RAJIV 
 SHAKDHER, J 
 December 18, 2008/kk 
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