RAVINDRA R FOTEDAR,MUMBAI vs. ASST CIT CIR 10(2), MUMBAI

Per P.K. Bansal, Vice President

This appeal has been filed by the assessee against the order of the CIT(A)-22, Mumbai dated 07.02.2014 for A.Y. 2009-10 confirming penalty levied by the AO under section 271(1)(c) of the Income Tax Act.

After hearing the rival submissions and going through the orders of the tax authorities below we noted that the issue for which the addition has been made by the AO and in respect of which the penalty has been levied by the AO has been considered by this Tribunal when the quantum appeal has travelled to the Tribunal. The Tribunal set aside the order of the CIT(A) restoring this issue to the file of the CIT(A) to decide the quantum appeal afresh. Since the quantum appeal has been restored to the CIT(A), we therefore set aside the order of the CIT(A) confirming the penalty levied by the AO and restore this issue also to the file of the CIT(A) to decide this issue afresh after giving opportunity to the assessee as in our opinion the finding given in the quantum appeal will have bearing on levy of penalty under section 271(1)(c) of the Act.

Shri Ravindra R. Fotedar 2. In the result, the appeal filed by the assessee stands allowed for statistical purposes.