ITO 19(1)(1), MUMBAI vs. ISHWAR SADAN CHS LTD, MUMBAI

The appeal filed by the Revenue is directed against the order dated 7.2.2014 passed by Ld CIT(A)-30, Mumbai cancelling the penalty levied by the AO u/s 271(1)(c) of the Income Tax Act, 1961.

At the time of hearing, the ld. Counsel for the assessee submitted that the assessment order on the basis of which the impugned penalty was levied has since been annulled by the Tribunal vide its order dated 27.8.2014 passed in (AY-2001-02), accordingly prayed for dismissal of the appeal filed by the Revenue.

The ld. DR did not dispute the factual aspects submitted by the ld. AR

Since, the assessment order, on the basis of which the penalty was levied by the AO, has been annulled by the Tribunal, penalty order and also impugned appellate order do not have legs to stand on its own. Accordingly, the appeal filed by the Revenue against the appellate order is liable to be dismissed. We order accordingly.