Hon'ble Prakash Krishna,J.
Connect the present appeal with I.T.A. No. 172 of 2010.
Heard Sri Shambhu Chopra, learned counsel for the appellant.
Appeal is admitted on the following substantial question of law:
"Whether the Hon'ble ITAT was legally correct in deleting the penalty imposed u/s 271 (1) (c) holding that once the basis for imposing penalty stood collapsed, there remain no justification to sustain penalty unless it is shown that order of Hon'ble Tribunal stands reversed by Hon'ble High Court, ignoring the fact that the department has not accepted the order of Hon'ble ITAT in the quantum appeal and filed before Hon'ble Allahabad High Court which is pending for disposal."
(Prakash Krishna,J) (Ashok Bhushan,J) Order Date :- 16.4.2012 MK/