SURYA ENTERPRISES PVT. LTD.,,NEW DELHI vs. ITO WARD-9(4), NEW DELHI

This appeal by the assessee is directed against the order of the ld. CIT (A)-31, New Delhi dated 11.02.2019 pertaining to assessment year 2008-09.

The issue raised is that ld. CIT (A) erred in sustaining the levy of penalty under section 271(1)(c) of the Income-tax Act, 1961 (for short ‘the Act’) for an amount of Rs.5,75,094/-. of unsecured loan under section 68 of the Act amounting to Rs.9,45,799/- . The ld. counsel further submitted that in quantum appeal, ITAT in assessee’s own case in for AY 2008-09 vide order dated 04.04.2019 has deleted the said addition. In this view of the matter, ld. counsel of the assessee submitted that there is now no basis for levy of penalty under section 271(1)(c) of the Act on the addition which has already been deleted by the ITAT.

Ld. DR for the Revenue did not controvert the aforesaid submission.

Accordingly, since the addition with reference to which penalty has been levied has been deleted by the ITAT, the penalty levied with reference to the said addition cannot survive, hence we set aside the orders of authorities below and delete the penalty.

In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on this 25th day of August, 2022.