DCIT CIRCLE-18(2), NEW DELHI vs. NOIDA SOFTWARE TECHNOLOGY PARK LTD., NEW DELHI

This appeal filed by the Revenue is against the order of the ld. Commissioner of Income Tax (Appeals)-6 [hereinafter referred to as CIT (Appeals)] New Delhi, dated 30.01.2019 in deleting penalty levied under Section 271(1)(c) of the Income Tax Act, 1961 (the Act) for assessment year 2010-11.

In spite of issue of notice none appeared on behalf of the assessee. This appeal is disposed of on hearing the ld. DR.

On hearing the ld. DR and perusing the order of the ld. CIT (Appeals) we observe that the Tribunal vide order dated 9.02.2018 has deleted the addition of Rs.9,19,93,625/- which was the basis for imposition of penalty. The ld. CIT (Appeals) in his order also observed that Hon’ble Delhi High Court in dated 28.11.2018 in Pr. CIT Vs. Noida Software Technology Park Ltd. dismissed the appeal of the Department. The ld. CIT (Appeals) also observed that the assessment order on the basis of which the penalty was levied has been set aside by the ITAT to the Assessing Officer. The penalty cannot stand by itself and is liable to be cancelled. Before us the Revenue could not admit any change in position thereafter. Therefore, since the quantum addition stands set aside to the Assessing Officer the penalty has no legs to stand. Accordingly, we sustain the order of the ld. CIT (Appeals) and reject the grounds raised by the Revenue.

In the result, appeal of the Revenue is dismissed.