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2018 (7) TMI 2033 - GUJARAT HIGH COURTPenalty levied u/s. 271(1)(c) - HELD THAT:- On fair reading of section 275(1A) of the IT Act, it can be said that fresh penalty proceedings are permissible only with a view to give effect to the order of the higher Forum revising the assessment and a fresh penalty order can be passed and/or penalty can be imposed, enhancing, reducing or canceling the penalty or dropping the proceedings for the imposition of the penalty on the basis of the assessment as revised by giving effect to such order of the Commissioner (Appeals) etc. Therefore, in a case where the assessment was not required to be revised pursuant to the order passed by the Commissioner (Appeals) or the Appellate Tribunal or the High Court or the Hon'ble Supreme Court, as the case may be, the power under Section 275(1A) of the IT Act cannot be exercised and the fresh penalty proceedings cannot be initiated once earlier the penalty proceedings were dropped after considering the reply submitted by the assessee, as there is no revised assessment which is required to be giving effect to. CIT (A) as well as the learned Tribunal are justified in deleting the penalty imposed under Section 271(1)(c) faced with a situation that earlier the penalty proceedings were dropped after considering the reply submitted by the assessee and that thereafter the assessment was not required to be revised giving effect to the order passed by the CIT (A) as the learned CIT (A) simply confirmed the assessment order determining the income - we confirm the order passed by the learned Tribunal deleting the penalty under Section 271(1)(c) - No substantial question of law.
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