SHRI AMIT ASHOK KHURANA,VADODARA vs. THE ACIT, CIRCLE-4,, VADODARA

With the assistance of Ld. Authorized Representative for the assessee, we find that the additions/disallowances made in the quantum assessment giving rise to the imposition of penalty in appeal has been reversed by the Co-ordinate bench of Tribunal in ITA No. 2303/Ahd/2012 for A.Y. 2009-10 in assessee own case vide order dated 05.01.2017. Thus in view of the fact that the quantum additions/disallowances itself deleted, the cause of action for imposition of penalty under section 271(1)(c) ceases to exist and does not survive any more. Thus we find merit in the plea of the assessee seeking relief from the penalty imposed by the Assessing Officer and confirmed by the CIT(A). The relief sought against imposition of penalty is thus accepted.

In the result appeal of the assessee is allowed. This Order pronounced in Open Court on 29/ 01/2018