SHRI GHASI RAM SHARMA,JAIPUR vs. INCOME TAX OFFICER, JAIPUR

At the outset, the ld AR of the assessee placed on record the quantum order passed by the ld. CIT(A) wherein the addition with 2 ITA 1029/JP/2017 Ghasi Ram Sharma Vs ITO respect to which the penalty has been imposed, had been deleted by the ld. CIT(A) vide order dated 28/03/2019.

I have considered the rival contentions and carefully gone through the orders of the authorities below and found that the addition of Rs. 21,00,634/- was made on account of long term capital gain. In the first round of appeal, the Tribunal have restored back the matter to the file of the ld. CIT(A) for deciding afresh on merits by providing adequate opportunity of being heard to the respective assessees. I found that after the matter was set aside by the Tribunal, the ld. CIT(A) vide its order dated 28/3/2019 deleted the said addition of Rs. 20,53,775/- after having a detailed observation at para 7.2 of his order. However, no appeal was filed by the department against the said order of the ld. CIT(A) in quantum appeal. The ld DR was specifically asked by the Bench to tell if any appeal has been filed by the department against the said order of the ld. CIT(A). The ld DR contended that no such appeal was filed in so far as tax effect was below the limit prescribed by the CDBT in circular No.3 of 2018 dated 11th July, 2018. Since the addition itself has been deleted, the penalty imposed with respect to said additions have no legs to stand. Accordingly, I direct the A.O. to delete the penalty so imposed U/s 271(1)(c) of the Act.

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