DCIT 1(3)(2), MUMBAI vs. MAHARAHSTRA STATE CO OPERAIVE AGRICULTURAL RURAL MULTIPURPOSE DEVELOPEMENT BANK LTD, MUMBAI

The only issue raised by the Revenue is deletion of penalty by the CIT(A) of `5,79,24,924/- as levied by the AO under Section 271(1)(c) of the Act.

At the outset the learned counsel for the assessee submitted before the Bench that the quantum appeal filed by the assessee before the Hon'ble Tribunal has been restored to the file of the CIT(A) for passing a speaking order, after considering the facts of the case and affording reasonable opportunity of hearing the assessee in for A.Y. 2001-02 and others vide order dated 14.03.2017. The learned counsel for the assessee submitted that the present penalty appeal may also be decided accordingly in view of the order of the ITAT in the quantum appeal.

We have heard the rival contentions and perused the record. The quantum appeal is restored to the file of the learned CIT(A) to pass a speaking order after taking into consideration all the facts and affording reasonable opportunity of hearing to the assessee. Accordingly we restore the penalty appeal also to the fie of the CIT(A) to decide the same after deciding the quantum appeal. The assessee is at liberty to take any fresh appeal before the learned CIT(A) during the penalty proceedings. The appeal of the Revenue is disposed off as indicated above.

In the result, the appeal filed by the Revenue is allowed for statistical purposes.