1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2458 OF 2009 The Commissioner of Income Tax – 7, Mumbai .. .. ..Appellant. Versus M/s.Savani Financials Limited .. .. .. .. ..Respondent. Mr.Suresh Kumar for the appellant. Mr.Pankaj R. Toprani for the respondent. CORAM : Dr.D.Y. Chandrachud & J.P. Devadhar, JJ. DATE : 7th January, 2010. P.C. : 1. The Income Tax Appellate Tribunal has relied upon the judgment of the Supreme Court in Virtual Soft Systems Limited V/s. Commissioner of Income tAx [ 289 ITR 93] while setting aside the penalty imposed under Section 271(1)(c) of the Income Tax Act, 1961. Since the judgment of the Supreme Court in Virtual Soft Systems has been over-ruled in Commissioner of Income Tax V/s. Gold Coin Health Food Private Limited [ 304 ITR 308], it would be appropriate to remand the proceedings to the Tribunal for a fresh decision on merits. Both the learned counsel for the revenue and the learned counsel appearing on behalf of the assessee have agreed to this course of action being followed. 2 2. In these circumstances, the impugned order of the Tribunal dated 17th June 2008 is set aside by consent and the proceedings are remanded back to the Tribunal for a fresh decision on merits. The Appeal is according disposed of. No order as to costs. (J.P. Devadhar, J.) (Dr.D.Y. Chandrachud, J.)