ORDINARY FINANCIAL SERVICES PVT. LTD.,NEW DELHI vs. ITO, WARD- 19(2), NEW DELHI

This appeal is filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals)-25, New Delhi, [hereinafter referred to CIT (Appeals)] dated 13.09.2017 for the assessment year 2011-12 in sustaining the penalty levied under Section 271(1)(c) of the Income Tax Act, 1961 (the Act).

None appeared when the matter called for hearing on 14.03.2022. However, the ld. Counsel for the assessee furnished a brief note stating that the Assessing Officer levied penalty under Section 271(1)(c) of the Act on the sole addition of Rs.49,00,000/- made in the assessment order passed under Section 143(3) of the Act on 11.03.2014. It is stated that the Tribunal by its order dated 21.02.2022 deleted the addition of Rs.49,00,000/- made in the assessment order. Copy of the order was placed on record. Therefore, it is submitted that in the light of the order of the Tribunal the penalty levied under Section 271(1)(c) be deleted.

I have perused the order of the Tribunal and find that the Tribunal in (Del) of 2015 dated 21.02.2022 deleted the impugned addition of Rs.49,00,000/- made under Section 68 of the Act by allowing the appeal of the assessee. Therefore, since the very basis for levying penalty is deleted, the penalty has no legs to stand. Accordingly, the penalty levied under Section 271(1)(c) is deleted.

In the result, the appeal of the assessee is allowed.