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Income Tax Appellate Tribunal, DELHI ‘G’ BENCH,
Before: SHRI N.K. BILLAIYA, & SHRI AMIT SHUKLA
PER N.K. BILLAIYA, ACCOUNTANT MEMBER:-
This appeal by the assessee is preferred against the order of the CIT[A]-26, New Delhi dated 13.06.2018 pertaining to Assessment Year 2010-11.
The solitary grievance of the assessee is that the ld. CIT(A) erred in confirming the penalty of Rs. 1,85,658/- levied u/s 271(1)(c) of the Income-tax Act, 1961 [hereinafter referred to as 'The Act'].
A perusal of the assessment order shows that the penalty proceedings have been initiated u/s 271(1)(c) of the Act on the addition made on account of capital gains of Rs. 9,01,250/- on transfer of land situated at Village Rojka, Gujjar District, Sohna, Haryana which was claimed as agricultural land but the same was denied by the Assessing Officer who made addition on account of capital gains.
The matter travelled upto the Tribunal and the Tribunal in has deleted the quantum addition. The relevant findings read as under:-
“71. We have considered the rival submissions of the parties and also perused the material available on record. Since no change into facts and circumstances have been pointed by the Revenue, we therefore, taking the consistent view, the grounds raised in this appeal are also allowed. Our finding in for Assessment Year
2010-11 would apply mutatis mutandi to the identical grounds raised in this year as well.”
Sublato Fundamento Cadit Opus, meaning thereby, that in case the foundation is removed, the super structure falls. Since the foundation [addition] has been removed, the super structure i.e. penalty must fall.
We, accordingly, direct the ld. CIT(A) to delete the penalty so levied.
In the result, the appeal of the assessee in is allowed.
The order is pronounced in the open court on 13.12.2021 in the presence of both the representatives.