TMI Blog2010 (1) TMI 1172X X X X Extracts X X X X X X X X Extracts X X X X ..... earned Department Representative that, by way of order dated 30th July 2009, passed by a coordinate bench of this Tribunal, the related quantum additions have been restored to the file of the Assessing Officer for fresh consideration, he suggested that the penalty matter should also be restored to the file of the Assessing Officer. 3. Learned counsel for the assessee, however, contends that once the quantum additions, in respect of which impugned penalty was levied, are not approved by the Tribunal, the very cause of action for the penalty does not survive, and the penalty should be quashed for this reason alone. Without prejudice to this argument, he further submits that the very fact that the Tribunal has not confirmed the related quan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CIT(A) as the case may be, has also to satisfy himself that it is a fit case for initiating the penalty proceedings as well. Only then, and only in respect of such additions which are also considered appropriate for being visited with initiation of penalty proceedings, the penalty proceedings under section 271(1)(c) are initiated. It is a natural corollary of the quantum addition being restored to the file of the A.O. or the CIT(A) that the addition, even if repeated wholly or partly, does not necessarily exist in the same form. The reasons of, and circumstances surrounding the said authority confirming the quantum additions again, may vary in such a situation. Therefore, the authority confirming the said addition wholly and partly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings is at liberty to initiate the penalty, if so deemed fit, in appropriate cases even in the changed circumstances. However, that cannot justify our remitting the penalty matter to the file of such an authority for finalizing the penalty proceedings. That will still be a step removed from the actual process at which the penalty is to be initiated i.e., being of the opinion that the related quantum proceedings must also be visited with initiation of penalty proceedings. Not only imposition of penalty but also initiation of penalty proceedings is not an automatic consequence of relate quantum additions being made to income of the assessee. In view of these discussions, and bearing in mind entirety of the case, we are of the considered view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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