M/S. ROSHAN MOTORS,MUZAFFARNAGAR vs. ITO, MUZAFFARNAGAR

At the outset of hearing, the Learned AR pointed out that the quantum appeal questioning the addition on the basis of which penalty in question has been levied, has been allowed by the ITAT for the statistical purposes vide order dated 02.12.2015 in (A.Y. 2010-11) in the case of assessee, a copy whereof has been made available. The Learned AR submitted that against the returned income of Rs.4,77,890, the assessment 2 was framed at the income of Rs.6,78,780. The assessee had preferred first appeal wherein the additions made by the Assessing Officer were confirmed and separate addition of Rs.2 lacs was made resulting in enhancement of income. Against the said first appellate order, the assessee has preferred appeal before the ITAT which has been allowed for statistical purposes vide order dated 02.012.2015 (supra).

The Learned Senior DR on the other hand tried to justify the first appellate order sustaining the penalty.

Considering the above submissions especially the very additions on the basis of which penalty in question under sec. 271(1)(c) of the Act was levied has been set aside by the ITAT to the file of the Learned CIT(Appeals) for his fresh consideration, hence, the penalty under consideration is now not maintainable. The same is thus directed to be deleted. The grounds involving the issue of validity of penalty levied under sec. 271(1)(c) of the Act at Rs.61,800 are thus allowed.

In result, the appeal is allowed. Order pronounced in the open court on 22.03.2016 ( PRASHANT MAHARISHI ) JUDICIAL MEMBER Dated: 22/03/2016 Mohan Lal