1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1993 OF 2009 The Commissioner of Income Tax ..Appellant. V/s. M/s. Jhavar Properties Pvt. Ltd. ..Respondent. Ms. Suchitra Kamble for appellant. Mr.Subhash S. Shetty for respondent. CORAM : V.C.DAGA AND J.P.DEVADHAR, JJ. DATED : 5TH OCTOBER, 2009. P.C. :- 1. Heard learned counsel for the rival parties. The appeal is admitted on the following substantial question of law:- “ Whether on the facts and circumstances of the case and in law, the ITAT was justified in deleting the penalty u/s.271(1)(c) of the Income Tax Act, 1961 relying upon the Hon’ble Supreme Court’s decision in Dilip N. Shroff V/s. JCIT 291 ITR 519 (SC) which was subsequently disapproved by the Hon’ble Supreme Court in the case of Union of India & Ors. V/s. Dharmendra Textiles Processors & Ors. (2008) reported in 306 ITR 277 ? “ 2. The appeal is taken up for final hearing by consent of the parties. Both parties agree that since the Tribunal has relied upon the judgment of the Supreme Court in the case of Dilip N. Shroff V/s. JCIT reported in 291 ITR 519 (SC), the impugned order is set aside without going 2 into the merits and demerits of the matter since the judgment of Dilip N. Shroff (supra) is set aside by the Supreme Court in Union of India & Ors. V/s. Dharmendra Textiles Processors & Ors. reported in (2008) 306 ITR 277 and the matter is remanded back to the Tribunal for consideration afresh in the light of the law down in Dharmendra Textiles (supra). 3. The Tribunal is expected to decide the appeal afresh following the principles of natural justice and by giving a reasoned order. 4. All contentions of the parties are kept open. 5. The appeal is disposed of accordingly with no order as to costs. (J.P.DEVADHAR, J.) (V.C.DAGA, J.)