SHEETAL J SEA,MUMBAI vs. ITO WD 15(1)(3), MUMBAI

This appeal has been filed by the assessee against the order passed by the Commissioner of Income-tax (Appeals)-26, Mumbai [hereinafter called as CIT(A)] dated 18-02-2014 passed against the penalty order of the AO u/s 271(1)(c) for AY. 2009-10 dated 18-06-2012.

During the course of hearing it was stated by the Ld. Counsel of the assessee that in this case, all the grounds raised in the quantum appeal against the assessment order filed by the assessee before the Tribunal has AO. Therefore, as on date, penalty order should not survive and may please be held so.

Per contra, the Ld. DR relied upon the orders of the lower authorities.

We have gone through the orders passed by the lower authorities. It is noted that the Tribunal has sent back all the issues raised in the assessment order to the AO vide its order dated05/12/2016 in ITA No.2713/Mum/2014. Therefore, as on date penalty order does not survive and the same is set aside. The AO shall be at his liberty to initiate penalty proceedings afresh as and when required, as per law, after passing of the assessment order, if any. Thus, with the aforesaid direction, appeal of the assessee is treated as allowed. Order was pronounced at the conclusion of the hearing.