Dismissing the Revenue’s appeal, the High Court by placing reliance on the decision of Hon’ble Supreme Court in the case of K.C. Builders  v. ACIT  (2004)  265 ITR 562 (SC)  wherein the Hon’ble Supreme Court held that where additions made in the assessment order on the basis of which penalty for concealment was levied, are deleted, there remains no basis at all for levying the penalty for concealment and therefore in such a case no penalty can survive and the same is liable to be cancelled. Held that the order of assessment, which was subject matter of challenge before this Court at the instance of the Revenue was dismissed. If that be the case, it would automatically result in setting aside the order of penalty imposed on the assessee. (AY 2005-06).