- (1.) THE present appeal filed under s. 260A of the IT Act, 1961 (hereinafter referred to as "the Act") has been filed against question of law : "Whether, on the facts and circumstances of the case, the Tribunal was legally justified in directing the AO to initiate penalty proceedings in fresh assessment when the limitation for completion of fresh assessment already expired as on date of Tribunal order -
(2.) WE have heard Sri A.N. Mahajan, learned standing counsel for the Department. Nobody is appearing on behalf of the respondent.
(3.) FROM a perusal of the order of the penalty, we find that penalty has been imposed on the ground that the cash credits recorded in the books of account of the respondent -assessee were not found explained satisfactorily and therefore, same were added towards the income of the assessee. Penalty of Rs. 20,000 was imposed under s. 271(1)(c) of the Act. The the Tribunal. The Tribunal while dismissing the Revenue's appeal has held that as in the quantum proceedings, the issue relating to addition which was a subject -matter of the present proceedings under s. 271(1)(c) has since been restored back to the file of the assessing authority for decision afresh, penalty imposed under s. 271(1)(c) does not survive. The Tribunal, however, gave the direction that the AO shall be at liberty to initiate penalty proceedings afresh, if he so likes, when he frames the fresh assessment order. From the perusal of the orders passed by the assessing authority as also the Tribunal, we find that the very basis on which the penalty was imposed under s. 271(1)(c) of the Act had already been set aside by the Tribunal in the quantum appeal and the matter was restored to the file of the AO.;