G D EDUCATIONAL SOCIETY,NOIDA vs. CIT(A)- 1, NOIDA

This appeal by the assessee is preferred against the order of the ld. CIT(A) – 1, Noida dated 25.09.2017 pertaining to Assessment Year 2010-11.

The sum and substance of the grievance of the assessee is that the ld. CIT(A) erred in imposing penalty u/s 271(1)(c) of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short] on the enhanced income of Rs. 2,37,66,767/-.

The roots for levy of penalty lie in the order of the ld. CIT(A) dated 30.03.2017 by which the ld. CIT(A) enhanced the assessed income of 3,38,750/- by the Assessing Officer vide order dated 20.03.2013. The assessed income of Rs. 3,38,750/- was enhanced by Rs. 2,37,66,767/-.

The order of the ld. CIT(A) in the quantum proceedings was challenged before the Tribunal and the Tribunal in order dated 30.07.2018 has remitted the matter to the file of the Assessing Officer for fresh adjudication with certain directions.

Pursuant to the directions of the Tribunal, the Assessing Officer framed assessment u/s 143(3) r.w.s 254 of the Act vide order dated 10.12.2019 and the income was assessed at Rs. NIL.

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.