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Income Tax Appellate Tribunal, DELHI BENCH ‘F’ : NEW DELHI
Before: SHRI ANIL CHATURVEDI & SHRI AMIT SHUKLA
The aforesaid appeal has been filed by the assessee against the impugned order dated 31.08.2018 passed by the CIT (Appeals)-30, New Delhi in relation to the penalty proceedings levied under section 271(1)(c) of the Income-tax Act, 1961 (for short ‘the Act’) for the assessment year 2007-08.
The assessee is mainly aggrieved by levy of penalty of Rs.15,82,487/- on account of addition of Rs.47,01,389/- on account of interest in cash on PDCs (Post Dates Cheques).
At the very outset, it has been pointed out by the ld. Counsel for the assessee that in the quantum proceedings, the Tribunal vide order dated 15.02.2022 in has deleted the addition, therefore, penalty levied by the AO and sustained by the ld. CIT(A) does not stand. Ld. DR also admitted that the quantum of addition has been deleted.
On perusal of the impugned order, we find that during the course of assessment, the addition of Rs.1,25,33,522/- was made on account of interest paid in cash outside the books of accounts on PDCs. Ld. CIT (A) in the quantum order has sustained the addition of Rs.47,01,389/- on which the AO levied the penalty of Rs.15,82,487/-. Now, this addition also has been deleted by the tribunal in the aforesaid order vide para 24 wherein the entire addition on account of PDCs of Rs.1,25,33,522/- has been deleted. Accordingly, the penalty levied on such addition is directed to be deleted.
In the result, the appeal filed by the assessee is allowed.
Order was pronounced on 22nd day of February, 2022.