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CORRIGENDUM After the pronouncement of the order passed on 11/01/2022 in , it was noticed that certain apparent mistakes have been committed rendering the reason and conclusion thereon being highly inconsistent and opposed to each other. Therefore, this corrigendum is being issued to remove such inconsistency and to bring justifiable conclusion having regard to the apparent facts and observations. Hence, our order dated 11.01.2022 is hereby rectified and be read as under :- “The captioned appeal has been filed at the instance of the assessee against the order of the Commissioner of Income Tax (Appeals)-30, New Delhi [‘CIT(A)’ in short], arising in the penalty order dated 26.02.2018 passed by the CIT(A) under Section 271(1)(c) of the Income Tax Act, 1961; (the Act) concerning assessment year 2006-07.
The assessee by way of its grounds, of appeal has challenged the action of the CIT(A) in affirming/confirming the penalty of Rs. 17,30,124/- under Section 271(1)(c) of the Act.
When the matter was called for hearing, as per assessee’s written submission, it is noticed that the quantum additions/disallowances giving rise to the imposition of penalty in appeal has been reversed by the co- ordinate bench of Tribunal in order dated 22.08.2017 in the quantum proceedings.
In view of the fact that the quantum additions/disallowances itself do not survive and ceased to exist having regard to the appellate order of the ITAT in quantum proceedings, the very basis for imposition of penalty under Section 271 (1)(c) does not survive any more. Therefore, we find merit in the plea of the assessee for reversal of the penalty imposed under Section 271(1)(c) of the Act.
In the result, the appeal of the assessee is allowed.”