Itxa/1738/2010 Of The Commissioner Of Income Tax -Ltu Mumbai v. Industrial Development Bank Of India

sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1738 OF 2010 The Commissioner of Income Tax-LTU ..Appellant. V/s. M/s. Industrial Development Bank of India ..Respondent. Mr. Suresh Kumar for the appellant. Mr. Ajit Shah with Srihari Iyer for the respondent. CORAM : J.P. DEVADHAR AND A.A.SAYED, JJ. DATED : 19TH JULY, 2011 P.C. :- 1.Whether the ITAT was justified in deleting the penalty imposed under Section 271(1)(c) of the Income Tax Act, 1961, is the question raised in this appeal. 2.The assessment year involved in AY 1992-93. 3.In the present case, the penalty was levied based on quantum additions made in the reassessment order for assessment year 1992-93. The appeal filed by the assessee against the reassessment order was dismissed by CIT(A), 4.On further appeal filed by the appellant, ITAT by the impugned order quashed the reassessment order on the ground that the reopening of the assessment was bad in law. The revenue moved the Committee on Disputes seeking its approval for filing further appeal. However, the Committee on Disputes declined to grant permission to the revenue to file appeal against the order of the ITAT. Thus, the quantum additions made pursuant to the reassessment order does not survive as the reassessment order itself is set aside by ITAT and that order has attained finality. In these circumstances, since the quantum additions do not survive, the question of sustaining the penalty under Section 271(1)(c) would not arise. Accordingly, the appeal is dismissed with no order as to costs. (A.A. SAYED, J.) (J.P. DEVADHAR, J.)