SUNITA DEVI BRIJIMOHAN TAPARIA,AHMEDNAGAR vs. INCOME-TAX OFFICER,

आदेश / ORDER

PER VIKAS AWASTHY, JM

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-2, Pune dated 22.07.2016 for the assessment year 2005-06 against confirming the levy of penalty u/s. 271(1) (c) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

2 ITA No.2606/PUN/2016 A.Y.2005-06

submitted at the outset that penalty u/s.271(1)(c) of the Act was levied in

respect of addition of Rs.16,00,000/- on account of unexplained investment

in re-assessment proceedings. The assessee challenged the validity of re-

assessment proceedings along with additions on merit before the

Commissioner of Income Tax (Appeals). However, the assessee was

unsuccessful. The assessee carried the matter in appeal before the Tribunal

in ITA No.308/PN/2015. The Tribunal vide order dated 05.08.2016 held the

re-assessment order passed u/s.143(3) r.w.s.147 of the Act as invalid.

Penalty vide order 26.03.2015 u/s.271(1)(c) of the Act was levied in respect

of addition made in re-assessment proceedings. Now, that the re-

assessment proceedings have been held to be bad in law by the Tribunal,

hence, penalty is liable to be deleted. The ld. AR furnished a copy of order of

the Tribunal in ITA No. 308/PN/2015 for assessment year 2005-06 decided

on 05.08.2016.

the Tribunal had set aside the assessment order passed u/s.143(3) r.w.s.

147 of the Act.

u/s. 271(1)(c) of the Act has been levied in respect of addition of

Rs.16,00,000/- made during re-assessment proceedings. The Tribunal in

assessee’s appeal in ITA No.308/PN/2015(supra.) has held the

reassessment order dated 22.12.2009 passed u/s.143(3) r.w.s. 147 of the

Act as invalid. Since, the substratum for levy of penalty has been eroded;

3 ITA No.2606/PUN/2016 A.Y.2005-06

penalty arising from the addition does not survive. Accordingly, impugned order is set aside and appeal of the assessee is allowed.

Order pronounced in open Court after hearing on Monday, the 29th day of October, 2018.

Sd/- Sd/- R. S. SYAL VIKAS AWASTHY VICE-PRESIDENT JUDICIAL MEMBER

पुणे / Pune; �दनांक / Dated : 29th October, 2018 SB आदेश क� ��त�ल�प अ�े�षत / Copy of the Order forwarded to :

अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The CIT(Appeals)-2, Pune. 4. The Pr. CIT-1, Pune. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, “बी” ब�च, 5. पुणे / DR, ITAT, “B” Bench, Pune. गाड� फ़ाइल / Guard File. 6.

// True Copy // आदेशानुसार / BY ORDER,

�नजी स�चव / Private Secretary आयकर अपील�य अ�धकरण, पुणे / ITAT, Pune.