SHRI KANCHANLAL NATWARLAL RANA,SURAT vs. THE INCOME TAX OFFICER, WARD 6(2), SURAT

ITA No.677 of 2015 1 Kanchanlal Natverlal Rana 3114o,<3rdcily3rfearT, rTT 4ryrlo,@ IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT sfRft.UA.aaf,> 41f4c4cF4are ft3it.

1 . This appeal by the Assessee is directed against the order dated of 09.01.2015 027^ Commissioner of Income-tax (Appeals)-1, Surat (in short CIT(A)) and relates to assessment year 1999-2000, in confirming penalty of Rs. 4,85,311 /- under section 271 (1) (C) of the Act. 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. 1506/Ahd/2013 dated 01.08.2016. ITA No.677 of 2015 2 Kanchanlal Natverlal Rana 3 We have heard the rival submissions We find that the issue of capital treated as unexplained cash credit 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 )(c) of the Act, on finalization of set-aside assessment proceedings, if the circumstances so warrant or he thinks it fit.