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Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL
Before: SHRI G.D. AGRAWALG.D. AGRAWAL & AND BEFORE SHRI G.D. AGRAWALG.D. AGRAWAL & AND SHRI SUDHANSHU SRIVASTAVA SHRI SUDHANSHU SRIVASTAVASHRI SUDHANSHU SRIVASTAVA SHRI SUDHANSHU SRIVASTAVA
PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP :- PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP This appeal by the assessee for the assessment year 2002-03 is directed against the order of learned CIT(A), Ghaziabad dated 14th January, 2011.
The only ground raised in this appeal by the assessee is against the levy of penalty under Section 271(1)(c) of the Income-tax Act, 1961 amounting to `26,54,200/-.
At the time of hearing before us, it is submitted by the learned counsel that this penalty had been levied by the Assessing Officer in respect of the addition of `74,34,469/-. It was pointed out by the learned counsel that the ITAT in quantum appeal vide order dated 22nd January, 2015 set aside the addition
2 ITA-1691/Del/2011 made by the Assessing Officer and restored the matter to the file of the Assessing Officer. Copy of the order is filed before us. Once the addition in respect of which penalty has been levied is set aside, the penalty cannot be sustained. We, therefore, cancel the penalty levied u/s 271(1)(c) of the Act with the remark that the Assessing Officer will be at liberty to reinitiate penalty proceedings after completing the fresh assessment if the facts of the case so warrant. With this remark, the penalty levied u/s 271(1)(c) is cancelled.
In the result, the appeal of the assessee is allowed. Decision pronounced in the open Court on 16.12.2016.