TMI Blog2018 (2) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... evying penalty has eroded, the penalty proceedings would not survive. Therefore, no useful purpose would be served by restoring penalty proceedings to the Assessing Officer. - Decided in favour of assessee - ITA Nos.1523 to 1528/PUN/2015 - - - Dated:- 29-1-2018 - SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM For The Assessee : Shri Rajiv Thakkar For The Revenue : Shri Ajay Modi ORDER PER VIKAS AWASTHY, JM : These six appeals by the assessee are directed against the order of Commissioner of Income Tax (Appeals)-13, Pune dated 23-09-2015 common for the assessment years 1998-99 to 2000-01 and 2002-03 to 2004-05 confirming levy of penalty u/s. 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Property Tax) Disallowance of expenses 1998-99 - 5,13,000 3,660 - 1999-00 - 5,13,000 3,660 - 2000-01 7,00,000 6,39,000 - 3,723 2002-03 5,00,000 17,91,000 - - 2003-04 - 17,91,000 - - 2004-05 - 17,91,000 - - 2.1 The A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... py of order of Tribunal dated 08-12-2017 in appeals arising from assessment proceedings. The ld. AR submitted that since the quantum additions have been deleted no penalty is to be levied on the assessee. 4. On the other hand Shri Ajay Modi representing the Department submitted that a perusal of order of Tribunal dated 08-12-2017 would show that the Tribunal has not exonerated the assessee completely. The Tribunal has directed the Assessing Officer to find out if any cash transactions are recorded in the name of assessee i.e. Shri Nanchand B. Shah and Shri Nanchand Bhogilal Shah and to make addition if his name exists. The Assessing Officer has yet to carry out this exercise, therefore, the order levying penalty may be restored to the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... making any addition, if circumstances so arise, the Assessing Officer shall grant opportunity of hearing to the assessee, in accordance with law. Hence, the impugned order is set aside and appeals of assessee are allowed in principle, subject to the aforesaid directions. 6. We find that the Tribunal has remitted the issue back to Assessing Officer to re-examine the seized material and to find if any cash transactions is recorded in the name of assessee i.e. Shri Nanchand B. Shah and Shri Nanchand Bhogilal Shah and to make addition of the same, in accordance with law. However, in principle the Tribunal has set aside the findings of Commissioner of Income Tax (Appeals). Once, the substratum for levying penalty has eroded, the penalty pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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