[2019] 102 taxmann.com 177 (Bombay)

IT : Where Tribunal had deleted penalty imposed upon assessee for concealment of income on grounds that it had in quantum appeal reduced income of assessee assessed at Rs. 34.63 lakhs to NIL and assessee had suffered loss in earlier years and subsequently Tribunal by an order dated 5-9-2018 recalled its previous order and posted penalty appeal for fresh hearing, aforesaid grounds were not sufficient to delete penalty and impugned order did not require any interference

Section 271(1)(c) of the Income-tax Act, 1961 – Penalty – For concealment of income (Disallowance of claim, effect of) – Assessment year 2001-02

 – Assessee filed return declaring loss of Rs. 3.67 crores – Assessing Officer assessed assessee’s income at Rs. 34.63 lakhs

 – Tribunal reduced assessee’s income to NIL

– In meantime, Assessing Officer had imposed penalty for concealment of income upon assessee on basis of escaped income of Rs. 34.63 lakhs

– Tribunal deleted penalty on grounds that it had in quantum appeal reduced income to NIL and assessee had suffered loss in earlier years – Revenue filed application for rectification before Tribunal

– Tribunal by an order dated 5-9-2018 recalled its previous order and posted penalty appeal for fresh hearing – Against impugned order, assessee filed writ petition

 – Whether grounds given by Tribunal were sufficient to delete penalty – Held, no – Whether impugned order dated 5-9-2019 required any inference

– Held, no

Sheetal Diamonds Ltd.