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Judgment
Ms. Vina Mandlik, counsel for the appellant, heard on admire. This appeal u/s 260-A of the income tax Act, raises the following question of law:-
Whether the Tribunal was right in deleting the penalty u/s 158BFA(2) amounting to Rs. 5,00,000 ?
The assessee is a Grain Merchant and while he was traveling by train from Indore to Ratlam on 13-9-98, he was detained by railway police and it was found that he was carrying cash of Rs. 9,70,000 with him. Proceedings u/s 132-A were initiated and the cash was seized by the department Since the assessee was unable to explain the source from which he obtained that income, the sum of Rs. 9,70,000 was added to his income but since the assessee surrendered Rs. 2,24,000, the penalty was imposed by the Assessing Officer on the remaining Rs. 7,46,000 in the sum of Rs. 5,00,000 under the provisions of section 158BFA(2).
The assessee filed an appeal before the CIT(A) where the CIT brought down the addition to Rs. 2,24,000 keeping in view that the said amount was surrendered by the assessee CIT(A). However, maintained the penalty of Rs. 5,00,000 which was further in appeal has been set aside by the Tribunal.
From the order passed by the Tribunal it is manifest that on appreciation of the facts brought on record, the Tribunal has set aside the said penalty. The tribunal, in view of the judgment of the jurisdictional High Court observed that penalty cannot be levied in the case because the addition has been deleted upon which the penalty was imposed. To reiterate, the Assessing Officer had made addition of Rs. 7,46,000 after accepting the amount surrendered Rs. 2,24,000. The Tribunal therefore, rightly observed that the addition of Rs. 7,46,000 having been deleted, the penalty imposed thereon could not be sustained. Under these circumstances we are of the view that no question of law arises in this appeal. The appeal is dismissed in limine.