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Union Of India & Ors vs M/S. Dharamendra Textile Processors ... on 29 September, 2008

20. The Ld. CIT(A), after considering the relevant submissions of the assessee and also relied upon the decision of the Hon'ble Supreme Court in the case of Union of India vs. Dharmendra Textile Processors reported in (2008) 306 ITR 277, observed that the penalty levied under section 271(1)(c) of the Act is justified in this case. However, this is a case covered by provisions of 13 ITA No.7539/M/2013 & ors M/s. Asia Investments Private Limited sub section (1A) to section 275 of the Act. This is a case where the relevant assessment order was the subject matter of an appeal to the Ld. CIT(A) under section 246 or section 246A(a) and an appeal to the appellate Tribunal under section 253 of the Act and an order imposing penalty is passed before the order of the ITAT was received by the Chief Commissioner or the Commissioner. Therefore, an order reducing or cancelling penalty or dropping the proceedings for the imposition of penalty may be passed by the AO on the basis of assessment as revised by giving effect to such order of the Commissioner (Appeals) or the ITAT after hearing the assessee and giving a reasonable opportunity of being heard as per law.
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