2018 (5) TMI 948

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....s that the ld.CIT(A) has erred in deleting penalty imposed under section 271(1)(c) of the Income Tax Act of Rs. 31,52,453/- for the Asstt.Year 2007-08; and Rs. 91,67,077/- for the Asstt.Year 2008-09. 3. We take facts from ITA No.3042/Ahd/2016 for the Asstt.Year 2007-08 for convenience of adjudication. Briefly stated facts, leading to imposition of penalty under section 271(1)(c) are that a search under section 132 of the Income Tax Act was conducted at the residential premises of Shri Vikas R. Patel on 4.3.2010 wherein certain documents alleged to be belonging to the assessee were found and seized. From the seized materials, an MOU dated 7-4-2007 pertaining to land bearing F.P.No.32 of T.P. No.29 of Survey No.217/1 and 216/2 admeasuring ....

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....thers, and the Tribunal after elaborate discussion quashed assessment framed under section 143(3) r.w.s. 153C of the Act; consequently addition made by the assessee stood cancelled. 5. Before us, the ld.counsel for the assessee submitted that since entire assessment framed by the AO for the Asstt.Years 2007-08 and 2008-09 have been quashed by the Tribunal on legal ground, and the AO failed to record his satisfaction for initiating proceedings under section 153C, order passed under section 271(1)(c) has no merit for consideration. The ld.CIT(A) has rightly cancelled the impugned penalty, and therefore, his order may be confirmed. The ld.DR on the other hand relied upon the order of the AO. 6. We have considered rival contentions and go....

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....ngly quash the impugned assessments framed in cases of all the three assessees in assessment years 2007-08 and 2008-09. First assesses Shri Anil R. Darji succeeds in his appeal IT(SS)A 258 and 259/Ahd/2013. The Revenue's appeals in cases of the other two assessees i.e. Shri Amit K. Patel and Shri Narendra R. Patel IT(SS)A Nos. 254 & 256/Ahd/2013 are dismissed and CO Nos. 211 & 213/Ahd/2013; respectively challenging validity of section 153C proceedings are accepted on the legal issue. This renders all other submissions on 'belonging to' aspect and merits as having been rendered infructuous." 7. In view of above order of the Tribunal quashing the assessment order for the assessment years 2007-08 and 2008-09 impugned ad....