DCIT, CIRCLE-12(2), NEW DELHI vs. I-PROCESS SERVICES INDIA PVT. LTD., NEW DELHI

ORDER PER SUDHANSHU SRIVASTAVA, JM: This appeal is preferred by the Department against order dated 03.05.2017 passed by the Learned Commissioner of Income Tax (Appeals)-39, New Delhi {CIT(A)} for Assessment Year 2009-10 wherein the Ld. First Appellate Authority has deleted the penalty of Rs.65,13,990/- imposed u/s 271(1)(c) of the Income Tax Act, 1961.

DCIT vs. I-Process Services India Pvt. Ltd.

2.0 At the outset, the Ld. Authorized Representative (AR) submitted that this Tribunal has already deleted the quantum addition made in the captioned assessment year vide order dated 21.04.2017 in and, therefore, the Ld. CIT(A), after duly taking note of the said order of the Tribunal, had rightly deleted the penalty imposed by the Assessing Officer. The Ld. Authorized Representative drew our attention to a copy of the order of the Tribunal in the quantum proceedings to buttress his submission.

3.0 The Ld. Sr. Departmental Representative (DR) fairly accepted that the contention of the Ld. Authorized Representative was correct.

4.0 Having heard both the parties and after having gone through the records as well as the order of the Tribunal in vide order dated 21.04.2017, we agree with the contention of the Ld. Authorized Representative that since the quantum addition has been deleted by this Tribunal, the penalty imposed on such addition does not survive. We also note that the Ld. CIT(A) has, while deleting the impugned penalty, duly noted

DCIT vs. I-Process Services India Pvt. Ltd. that the appeal in the quantum proceedings has been allowed by the ITAT as above. Accordingly, in view of the quantum addition having been deleted by this Tribunal, the penalty imposed u/s 271(1)(c) of the Act does not survive. Therefore, we find no reason to interfere with the finding of the Ld. CIT(A) in this regard and we dismiss the grounds raised by the Department.

5.0 In the final result, the appeal of the Department stands dismissed.

Above decision was announced on conclusion of Virtual Hearing on 6th July, 2021