LIBERTY MARKETING CO,DELHI vs. ITO, INCOME TAX DEPARTMENT
Income Tax Appellate Tribunal, DELHI BENCH “A”: NEW DELHI
Before: SHRI M. BALAGANESH & SHRI YOGESH KUMAR U.S.Liberty Marketing Co. B-12, Gulmohar Park, Delhi Vs. ITO, Ward-29(1),
PER M. BALAGANESH, A. M.: 1. The appeal in ITA No. 233/Del/2025 for AY 2008-09, arises out of the order of the ld. Commissioner of Income Tax (Appeals)-11, New Delhi [hereinafter referred to as ‘ld. CIT’, in short] dated 27.08.2020 against the order of assessment passed u/s 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 28.03.2016 by the Assessing Officer, ITO, Ward-32(5), New Delhi (hereinafter referred to as ‘ld. AO’). 2. The only effective issue to be decided in this appeal is as to whether the ld CIT(A) was justified in confirming the levy of penalty u/s 271(1)(c) of the Act in the facts and circumstances of the instant case. 3. We have heard the rival submissions and perused the material available on record. At the outset, the ld AR placed on record the copy of the order of the ld CIT(A) in IT Appeal No. 458/16-17 dated 27.08.2020 passed in the quantum proceedings wherein, the addition on account of unverified sundry creditors of Rs. 80,40,161/- was deleted. Since, the quantum addition has been deleted, the concealment penalty on the same would have no legs to stand. Hence, the penalty levied u/s 271(1)(c) of the Act is hereby deleted. 4. In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 30/07/2025. - - (YOGESH KUMAR U.S.)
ACCOUNTANT MEMBER
Dated: 30/07/2025
A K Keot