2009 (1) TMI 95

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....A KUMARI - The appellant-revenue has preferred the present appeal against order dated 13.04.2007 made by the Income-tax Appellate Tribunal, Ahmedabad Bench in I.T.A. No.655/Ahd/07 for the Assessment Year 2001-2002, by proposing the following question of law: "Whether the Appellate Tribunal is right in law and on facts in confirming the order of the CIT (A) canceling the penalty levied u/s. 271(....

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....iled by the appellant has been decided. In the circumstances, as the quantum appeal has been decided by the Tribunal, subsequent to passing of order dated 13.04.2007, whereby it has been held that no penalty can be levied on the assessee in view of the decision of the Apex Court in case of Virtual Soft Systems Ltd. Vs. CIT, [2007] 289 ITR 83 (SC), the following substantial question of law arises. ....

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....alty proceedings despite pendency of appeal in quantum proceedings. As can be seen from the impugned order of tribunal dated 8th July,2003 sustaining penalty, it has extracted a portion of the order of Commissioner (Appeals) upholding levy of penalty and thereafter proceeded to decide on merits and ultimately dismissed the appeal of the assessee. The Tribunal has not, as is apparent from the impug....

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....king into consideration its own finding rendered in quantum proceedings as per its order dated 25th January,2005." 5. This decision applies on all fours to the case in hand. 6. In the present appeal as well we find from the perusal of the order of the Tribunal dated 13.04.2007 that no attempt has been made to ascertain whether an appeal regarding quantum was filed, or pending. The merits of ....