JAWAHAR LAL GUPTA,J. - (1.) THE Revenue has filed this appeal under S. 260A of the IT Act, 1961. It challenges the order dt. 22nd June, 1999, passed by the Appellate Tribunal in respect of the asst. yr. 1984-85. The following question has been posed for the consideration of this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in upholding the order of the CIT(A) cancelling the penalty levied under S. 271(1)(c) by stating that the addition in respect of which the penalty has been levied stood deleted while the reference under S. 256(2) against the deletion of addition is pending before the Hon'ble High Court ?"
(2.) MR . Sawhney, learned counsel for the Revenue, very fairly states that the appeal filed by the assessee was accepted by the Tribunal and that the reference petition filed by the Department was dismissed. The order of the Tribunal was affirmed by the High Court. These appeals admittedly related to the amount of taxable income. Once the claim of the assessee with regard to the income has been accepted, the order regarding penalty proceedings cannot be sustained. Resultantly. Mr. Sawhney states that this appeal has to be dismissed in view of the events which have taken place subsequent to the passing of the order. Mr. Sawhney has also pointed out that a similar matter has already been decided by a Bench of this Court in ITA No. 191 of 1999 by its order dt. 2nd Nov., 2000. In view of the above, the appeal is dismissed. No costs.;