2009 (12) TMI 45

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..... orrectness of the order of the Tribunal dated 30th November 2005 made in I.T.A.No.1185/Mds/2002 relating to the assessment year 1996-97 wherein and whereby the penalty levied by the assessing officer under Section 271 (1)(c) of the Income Tax Act and upheld by the Commissioner of Income  Tax (Appeals) has been directed to be deleted by the Tribunal on the premise that the Tribunal by its orde .....

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..... l, the Income Tax Appellate Tribunal decided the issue in favour of the assessee on the ground that when the assessee's claim of deduction u/s 80-O had been allowed by the Tribunal in its order dated 30.04.2003, in ITA.No.57/Mds/2000, the very basis for the levy of penalty has gone. The correctness of the same is now canvassed before this Court by framing the following question of law:- "Whether .....

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..... has been upheld. 4. In view of the fact that the quantum appeal has been decided in favour of the assessee, virtually the basis for imposition and levy of penalty under Section 271(1)(c) is not available. When such is the position, the imposition of penalty is not in accordance with law. Hence the question of law is answered in affirmative and in favour of the assessee. The appeal is dismissed.< .....

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