KAWALNAIN SINGH SEHGAL,MUMBAI vs. ITO 21(2)(3), MUMBAI

This appeal filed by the assessee on 21.6.2016 is against the order of the CIT (A)-38, Mumbai dated 31.3.2016 for the assessment year 2009-2010.

The solitary issue raised in this appeal relates to the penalty u/s 271(1)(c) of the Act. In this regard, Ld Counsel for the assessee brought my attention to the order of the Tribunal in quantum appeal vide for AY 2009- 2010, dated 17.2.2017 and mentioned that vide para 6 of the said order (supra), the matter was remanded back to the file of the AO for fresh adjudication of the issue after affording a reasonable opportunity of being heard to the assessee. Therefore, the penalty levied, which is the subject matter of the present appeal, has no legs to stand. 3. On hearing both the parties and on perusal of the said order of the Tribunal (supra), I find, the impugned penalty order is unsustainable in law considering the said decision of the Tribunal (supra). Accordingly I order. However, AO is free to initiate the penalty proceedings as per the law during the remanding proceedings to