DILIP MOTILAL CHORDIYA,,PUNE vs. DEPUTY COMMISSIONER OF INCOME TAX,,

The issue raised in the present appeal is against levy of penalty under section 271(1)(c) of the Act at ₹ 22,65,980/-, for which the assessee has raised various grounds of appeal.

The learned Authorized Representative for the assessee pointed out that the issue on merits has been set aside to the file of Assessing Officer by the Tribunal vide its order dated 28.03.2018, hence penalty proceedings may also be set aside to the file of Assessing Officer.

The learned Departmental Representative for the Revenue has no objection to the said proposal.

We have heard the rival contentions and perused the record. The Tribunal in ITA No.339/PUN/2012, relating to assessment year 2007-08, vide order dated 28.03.2018 had decided the quantum appeal filed by assessee and the issue has been set aside for proper adjudication because of additional evidence filed, to the file of Assessing Officer. Consequently, there is no addition at present in the hands of assessee as the matter has been set aside. Accordingly, the basis for penalty proceedings initiated, since has been set aside, we also set aside penalty proceedings to the file of Assessing Officer to decide the same in line with deciding the quantum addition in the hands of assessee. The grounds of appeal raised by assessee are thus, allowed for statistical purposes.

In the result, the appeal of assessee is allowed for statistical purposes.