INDIAN WIRE & STEEL PRODUCTS,KOLKATA vs. ACIT, CIR. 44, KOLKATA

At the outset, the Ld. A.R. of the assessee Shri Avijit Dey drew our attention to the fact of this appeal of the assessee is against the action of the Ld. CIT(A) in confirming the penalty levied by the AO u/s 271(1)(c ) of the Income Tax Act, 1961 (hereinafter referred to as the Act). According to Ld. A.R, the quantum appeal against the addition in the assessment order made by the AO has been deleted by this Tribunal in assessee’s own case in for AY 2009-10 vide order dated 24.07.2019 by quashing the reopening re- opening of the assessment itself which led to the addition by the AO and drew our attention to page 1 to 6 of PB wherein we note that the assessee’s appeal for AY 2009-10 in respect to the quantum addition made by the AO after reopening the assessment was allowed by this Tribunal quashing the reopening itself. Thus it is noted that the penalty which was levied by the AO stems from the quantum addition made by the AO after reopening the assessment. And since this Tribunal has quashed the reopening the assessment itself, penalty also does

In the result, appeal of the assessee is allowed.