MANISH PERIWAL,NEW DELHI vs. ACIT, CENTRAL CIRCLE-2, NEW DELHI

This appeal is filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals)-23 [hereinafter referred to as CIT (Appeals)] New Delhi, dated 14.12.2017 in sustaining the penalty levied under Section 271(1)(c) of the Income Tax Act, 1961 (the Act) for assessment year 2006-07.

The ld. Counsel for the assessee, at the outset, submits that the quantum addition / disallowance made while completing the assessment under Section 143(3) read with Section 153A of the Act has been deleted by the Tribunal in dated 18.05.2022. Copy of the order is placed on record. The ld. Counsel for the assessee, therefore, submits that since the quantum addition / disallowance made while completing the assessment has been deleted by the Tribunal, the penalty order passed by the Assessing Officer cannot survive.

We have perused the order of the Tribunal in dated 18.05.2022 for the assessment year 2006-07 and find that the Tribunal held that no addition is called for in the absence of any incriminating material found and seized during the course of search and seizure action. Since the Tribunal deleted the addition made in the assessment order passed under Section 143(3) read with Section 153A of the Act which was the basis for imposition of penalty under Section 271(1)(c) of the Act the penalty order will not survive. Accordingly, the penalty order passed by the Assessing Officer imposing penalty under Section 271(1)(c) of the Act for the assessment year 2006-07 is set aside and the penalty is deleted.

In the result, appeal of the Revenue is dismissed.