MOIN KHAN,NEW DELHI vs. ITO, WARD-6(1), NEW DELHI

The present appeal filed by assessee is against the order of CIT(A)-38, Delhi, dated 23.03.2017 relating to Assessment Year 2008-09 against the penalty levied under section 271(1)(c) of the Income-tax Act, 1961 (in short ‘the Act’).

The present appeal is filed against the levy of penalty under section 271(1)(c) of the Act. The learned AR for the assessee pointed out that the Tribunal has set aside the quantum proceedings and consequently the penalty order does not survive.

On the perusal of the record, we find that the Tribunal in relating to Assessment Year 2008-09 vide order dated 02.03.2017, has remitted the issue on merits back to the file of AO, to decide the same de novo. In such circumstances, the penalty levied under section 271(1)(c) of the Act on the original additions made by the AO does not survive, and consequently the penalty proceedings completed against the assessee also do not survive and the same are cancelled.

In the result, the appeal filed by the assessee is allowed.