1 ITXA6097-10.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ttm INCOME TAX APPEAL NO.6097 OF 2010 The Commissioner of Income Tax-TDS .. Appellant Vs. M/s.Bharat Bijlee Co.Ltd. .. Respondent. Ms.Suchitra Kamble for the appellant Mr.Mihir Naniwadekar for the respondent CORAM : J.P. DEVADHAR & K.K. TATED, JJ. DATE : 5TH OCTOBER, 2011. P.C. 1. Whether the ITAT was justified in deleting the penalty levied u/s. 271(1)(c) of the Income Tax Act, 1961 is the question raised in this appeal. 2. Penalty under section 271(1)(c) was imposed by treating the assessee to be assessee in default under section 201 of the Income Tax Act, 1961 as the assessee failed to deduct tax at source. Admittedly, the order of the ITAT holding the assessee to be assessee in default has been set aside by this court by Appeal No.5532 of 2010 filed by the assessee on 8.9.2011. Since the basic order passed under section 201 of the Income Tax Act, 1961 itself has been set aside, the penalty levied under section 271(1) (C) of the said act cannot be sustained. Accordingly, appeal is dismissed. (K.K. TATED, J.) (J.P. DEVADHAR, J.)