2011 (10) TMI 761 - AT - Income Tax

Summary

Issues involved: Validity of penalty u/s. 271FA of the Act levied by the Ld. Director of Income Tax (CIB), Pune.

The appellant questioned the validity of penalty u/s. 271FA of the Act levied by the Ld. Director of Income Tax (CIB), Pune on several grounds. The Ld. A.R. cited the decision of Pune Bench of the Tribunal in a similar appeal where the appellant was allowed to withdraw the appeal with the liberty to file appeal before the appropriate authority in accordance with law, if so advised. The Ld. D.R. placed reliance on the penalty order. The Tribunal found that the appeal against the order of the Director of Income Tax (CIB) was to be filed before the Commissioner of Income Tax (Appeal) as per provisions of Section 246A(1)(q) of the Act. Following the decision of the Pune Bench of the Tribunal, the appellant was allowed to withdraw the present appeal with the liberty to file appeal before the appropriate authority, if so advised. Consequently, the appeal was treated as dismissed being non-maintainable before the Tribunal.

The order was pronounced in the open Court on 21st October, 2011.