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Income Tax Appellate Tribunal, DELHI BENCHES : F : NEW DELHI
Before: SHRI R.S. SYAL & SMT BEENA PILLAI
Date of Hearing : 20.11.2017 Date of Pronouncement : 21.11.2017 ORDER PER R.S. SYAL, VP: This appeal by the assessee is directed against the order passed by the CIT(A) on 31.08.2015 upholding the penalty of Rs.42,07,500/- imposed by the Assessing Officer u/s 271(1)(c) of the Income-tax Act, 1961 (hereinafter also called ‘the Act’).
We have heard both the sides and perused the relevant material on record. The penalty proceedings arose out of assessment order passed by the Assessing Officer pursuant to notice u/s 148. Such assessment order was challenged in appeal. The Tribunal, vide its order dated 28.12.2016, has held the initiation of reassessment proceedings as invalid. A copy of such order in for assessment year 2006-07 has been placed on record. Nothing has been brought on record to demonstrate that such order passed by the Tribunal has been set aside or modified in any manner by the Hon'ble High Court. Since the very foundation of the penalty proceedings, being the assessment order passed u/s 143(3) read with section 147 ceases to exist, there can be no question of any penalty flowing therefrom. We, therefore, set aside the impugned order and order for the deletion of the penalty.
In the result, the appeal filed by the assessee is allowed.