HIKAL LTD,MUMBAI vs. DCIT CIR 3(1), MUMBAI

The present appeal has been preferred by the assessee against the order dated 14.10.2013 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2002-03 agitating the confirmation of the penalty levied under section 271(1)(c) of the Act.

At the outset, the Ld. A.R. of the assessee has stated that the quantum additions in respect of which the penalty in question was levied by the Assessing Officer (hereinafter referred to as the AO) have been made pursuant to the reopening of the assessment. He has further invited our attention to the order of the Tribunal dated 17.02.16 passed in relevant to A.Y. 2002-03 vide which the very reopening of the assessment has been held to be invalid and the consequential additions made pursuant to reopening have been set aside. 2 M/s. Hikal Ltd.

In view of this, the very base upon which the penalty in this case was levied has ceased to exist, hence, the consequent penalty has no legs to stand and the same is accordingly ordered to be deleted.

In the result, the appeal of the assessee is hereby allowed.