1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.593 OF 2008 The Commissioner of Income Tax – 3, Mumbai ..Appellant. Versus M/s.Gooddeal Investment & Finance Limited ..Respondent. Mr.Suresh Kumar for the appellant. None for the respondent. CORAM : Dr.D.Y. Chandrachud & J.P. Devadhar, JJ. DATE : 3rd February, 2010 P.C. : 1. The only question that is raised in the appeal at the stage of admission was, whether the Tribunal was justified in deleting the penalty levied by the Assessing Officer under Section 271(1)(c) of the Income Tax Act, 1961. The appeal was admitted on 16th September 2008 and it has now been placed for hearing. 2. The Tribunal has followed the judgment of the Supreme Court in the case of Prithipal Singh, 249 ITR 670 and the judgment of this Court in CIT V/s. Orient Syntax (Income Tax Appeal No.1069 of 2000) decided on 25th July 2005. The judgment of the Supreme Court in Prithipal Singh has been held in a 2 subsequent judgment in the case of Goldcoin Health Food Private Limited, 304 ITR 308 (S.C.) not to lay down the correct position of law. In the circumstances, the appeal would have to be allowed and the proceedings would have to be remitted back to the Tribunal for reconsideration on merits. 3. In the circumstances, in order to facilitate a fresh order on remand, the impugned order of the Tribunal dated 12th July 2006 is set aside and the proceedings are remitted back to the Tribunal for fresh decision on merits. The appeal is accordingly disposed of. There shall be no order as to costs. (J.P. Devadhar, J.) (Dr.D.Y. Chandrachud, J.)