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Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI
Before: SHRI SAKTIJIT DEY & SHRI ANADEE NATH MISSHRA
ORDER PER SAKTIJIT DEY, JUDICIAL MEMBER: This is an appeal by the assessee against order dated 20.12.2019 of learned Commissioner of Income-Tax (Appeals)-35, New Delhi confirming penalty imposed of Rs.13,21,969 under Section 271(1)(c) of the Income-Tax Act,1961 for the assessment year 2015-16.
At the outset, learned counsel appearing for the assessee, submitted that the addition based on which the assessing officer has imposed penalty under Section 271(1)(c) of the Act, in the meanwhile, has been deleted by the Tribunal while deciding the appeal filed by the Revenue and cross objection of the assessee arising out of the quantum proceedings. In this context, he drew our attention to order dated 08.12.2021 passed by the Tribunal in and C.O. No. 61/Del/2021.
Learned Departmental Representative, after perusing the order of the Tribunal, fairly agreed that the addition based on which the penalty was imposed has been deleted by the Tribunal.
Having considered rival submissions and perused the material available of on record, we find that based on certain additions made by the assessing officer and partly sustained by learned Commissioner (Appeals), the assessing officer initiated proceeding for imposition of penalty under Section 271(1)(c) of the Act and ultimately passed order imposing penalty under the said provision. However, in the meanwhile, while deciding the appeal and cross objection filed respectively by the revenue and assessee in quantum proceedings, the Tribunal has deleted the entire addition. Therefore, the very basis of imposition of penalty under Section 271(1)(c) of the Act stands obliterated.
In view of the aforesaid, we delete the penalty imposed under Section 271(1)(c) of the Act.
In the result, the appeal is allowed.
Order pronounced in the open court on 26th July, 2022.