Sec. 271(1)(c) of Income Tax Act, 1961— Penalty — Tribunal was right in law in holding that the penalty levied under Section 271(1)(c) has to be sustained when in its earlier order, the assessee's appeal was allowed and the Departmental appeal was dismissed

Facts: Being aggrieved of the order of Tribunal, assessee went on appeal before High Court and raised the question of law that " Whether the Income Tax Appellate Tribunal was right in law in holding that the penalty levied under Section 271(1)(c) has to be sustained when in its earlier order dated 25.11.2016, the assessee's appeal was allowed and the Departmental appeal was dismissed ? And Whether the Income Tax Appellate Tribunal was right in law in reversing the earlier order of the Tribunal dated 25.11.2016 even after the application under Section 254(2) by the Department was dismissed vide order dated 01.2.2019 ?”

Held, that in the order of the Tribunal dated 25.11.2016, there is a clear finding that the assessee is liable to penalty under Section 271(1,)(c), hence, if the assessee was aggrieved, she should have challenged that portion of the order of the Tribunal, which held that the assessee should be liable to penalty. It is pointed out by learned counsel appearing for the assessee that the Revenue moved a miscellaneous petition under Section 254 before the Tribunal which was dismissed. It was found from the order passed by the Tribunal dated 01.2.2019 that the miscellaneous petition filed by the Revenue was dismissed as time barred and not on merits. In any event, the finding rendered by the Tribunal in its order dated 25.11.2016 having attained finality and the order imposing penalty having been confirmed, the decision arrived at by the Tribunal in dismissing the assessee's appeal does not call for any interference. Accordingly, the order passed by the Tribunal stands confirmed and the substantial questions of law framed for consideration are answered against the assessee. [2020] 27 Itcd online 30 (MAD) - R. MAHALAKSHMI V/s ASSTT. CIT - [2020] 27 ITCD Online 030 (MAD)