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Income Tax Appellate Tribunal, DELHI BENCH “C”: NEW DELHI
Before: SHRIR.K. PANDA & SHRI N. K. CHOUDHRY
PER N.K. CHOUDHRY, J. M.: 1. These appeals have been preferred by the assessee against the ordersdated 14.09.2018 impugned herein passed by the ld. Commissioner of Income Tax (A)-1, Bhopal (MP) (in short ld. Commissioner), whereby the ld. Commissioner confirmed the penalty levied by the AO u/s 271(1)(c) of the Income Tax Act, 1961 (in short “ the Act”) for Assessment Years 2010-11 and 2011-12.
As the facts and issues involved in the appeals under consideration are exactly similar and therefore, the same have been taken simultaneously for adjudication and for brevity we shall quote the facts and issues involved in .
At the outset, it was submitted by the Ld. AR of the Assessee and not refuted by the ld. DR that an addition of Rs. 42,21,790/- was made on account of disallowance u/s 14A of the Act by the AO vide order dated 14.02.2013 u/s 143(3) of the Act and on the basis of the said addition the penalty to the tune of Rs. 42,01,119/- was imposed by the AO vide order dated 31.03.2015 u/s 271(1)(c) of the Act.
The said addition was challenged upto the level of ITAT and the Hon’ble Tribunal vide order dated 14.07.2017 in 570 and 571/Ind/2013 restored the issue qua addition on account of disallowance u/s 14A of the Act, to the file of the AO for fresh adjudication.
Since the addition on the basis of which the penalty under challenge was imposed, itself is not in existence therefore, penalty under challenge cannot survive, resultantly, penalty stands deleted and appeals of the assessee are allowed.
We may clarify that the AO shall be at liberty to initiate fresh penalty proceedings depending upon the adjudication of the issue qua disallowance u/s 14A of the Act.