KANAK STOCK BROKERS P LTD,MUMBAI vs. DCIT CC 46, MUMBAI

During the course of hearing, arguments were made by Shri Mukesh Choksi on behalf of the Assessee and by Shri B.S. Bist, Departmental Representative (Sr. DR) on behalf of the Revenue.

These appeals have been filed against the common order of Ld. CIT(A) dated 14.11.2014 passed against the penalty order u/s 271(1)(c) for different years. Identical issue raised in all the appeals is with regard to levy of penalty u/s 271(1)(c). During the course of hearing Mr. Mukesh Choksi, Director of these companies appeared and submitted that in the quantum appeal, the Tribunal has set aside the assessment order of Ld. CIT(A) and restored the matter back to the file of the AO to redetermine the total income as per direction of the Tribunal after giving original opportunity of hearing to the assessee. Thus, as on date, order of the AO no more survives and therefore, penalty order should also go. 3.1. Per contra, Ld. DR submitted that penalty orders should also be sent back to the file of the AO. 3.2. We have gone through the orders passed by the Tribunal dated 30.09.2016 in to 245/Mum/2013 in the Alembic Securities P. Ltd. 3 case of M/s. Alembic Securities Pvt. Ltd. v. DCIT and order dated 09.09.2016 in & 310/Mum/2013 in the case of Kanak Stock Brokers Pvt. Ltd. In both these orders, the Tribunal has set aside the order of the Ld. CIT(A) passed in the quantum proceedings and restored the matter back to the file of AO to re-determine the total income as per Tribunal’s directions contained in its orders. Under these circumstances, impugned penalty orders are also set aside. The AO is at his liberty to initiate the penalty proceedings after passing fresh assessment order as per law and facts of the case.

In the result, these four appeals may be treated as allowed for statistical purposes.

Sd/- Sd/- (Sanjay Garg ) (Ashwani Taneja) �या�यक सद�य / JUDICIAL MEMBER लेखा सद�य / ACCOUNTANT MEMBER मुंबई Mumbai; �दनांक Dated : 21/10/2016 ctàxÄ? P.S/.�न.स. आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. आयकर आयु�त(अपील) / The CIT, Mumbai. 4. आयकर आयु�त / CIT(A)- , Mumbai 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, मुंबई / DR, ITAT, Mumbai 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, स�या�पत ��त //True Copy//