1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1785 OF 2009 The Commissioner of Income Tax – 2, Mumbai ..Appellant. Versus M/s.Binani Metals Limited, Mumbai ..Respondent. Mr.P.S. Sahadevan for the appellant. Mr.Atul K. Jasani for the respondent. CORAM : V.C. DAGA & J.P. DEVADHAR, JJ. DATE : 18TH SEPTEMBER 2009 P.C. : 1. Heard learned counsel for the parties. Admit on the following substantial question of law : “Whether on the facts and in the circumstances of the case, the Tribunal was correct in law in upholding the order of learned IT (A) in cancelling the penalty of Rs.66.7 lac levied u/s. 271(1)(c) following the Decision of the Apex Court in the case of M/s.Virtual Soft Systems Limited whereas, the larger Bench of the Apex Court in CIT -1, Ahmadabad Vs. Gold Coil Health Food Limited dated 18-8-2008 overruled the said decision ? 2. The tribunal has dismissed the appeal filed by the revenue, relying upon the decision of the Apex Court in the case of Virtual Soft Systems Limited reported in 289 ITR 83. The said judgment is no longer a good law in view of the subsequent Judgment of the Supreme Court in the case of Gold Coin Health Food 2 Limited reported in 305 ITR 308. In this view of the matter, the appeal is allowed by setting aside the impugned order. The matter is to be remanded back to the tribunal for consideration afresh in view of the judgment of the Supreme Court in the case of Gold Coin Health Food Limited (Supra). 3. In this view of the matter, the appeal is disposed of in terms of this order with no order as to costs. (J.P. Devadhar, J.) (V.C. Daga, J.)