SHREE M.D. WEAVES,SURAT vs. THE INCOME TAX OFFICER,WARD-1(2)(1), SURAT

This appeal by the Assessee is directed against the order dated of 15.04.2015 Commissioner of Income-tax (Appeals)-Il, Surat (in short CIT(A)) and relates to assessment 7. , year 2003-04, in confirming penalty of Rs.2,06,540/- under section 271 (1) (C) of the 2 At the out set of hearing before Us, the learned Counsel for the assessee submitted that the issue on which penalty was levied has been set-aside by the Tribunal the file of AO for fresh consideration, vide ITA No. 897/Ahd/2013 dated 20.01.2017. Act. ITA No.2449 of 2015 2 Shree M.D Weaves 3 We have heard the rival submissions. We find that the issue of capital treated as unexplained cash credit and capital introduction on which penalty levied stands to set aside to the file of the AO for fresh decision by the order of Tribunal (supra): Thus, the issue on which penalty is levied is no longer survived; therefore, penalty levied is not maintainable as of now. Accordingly, we delete the penalty so levied subject to condition that the AO is free to re-initiate penalty proceedings under section 271 (1 Jc) of the Act, on finalization of set-aside assessment proceedings, if the circumstances so warrant or he thinks it fit: 3. In the result, the appeal of the assessee stands allowed: Order was pronounced in the open court on 12.01.2018. - ~ CMGARG) (JUDICIAL MEMBER) S41 (O.P. MEENA) (ACCOUNTANT MEMBER) Dated: 12.01.2018 Copy to: Appellant, Respondent, CIT(A) Pr. CIT, DR, Surat By Order zo/z)k Assistant Registrar 1en47 teiR 8F4" exklv aifzv T = aadla, Ta.