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Income Tax Appellate Tribunal, DELHI BENCH: ‘FRIDAY-A’: NEW DELHI
Appellant By Sh. Anoop Sharam, CA Respondent by Sh. Jagdish Singh, Sr. DR Date of Hearing 18.12.2020 Date of Pronouncement 18.12.2020 ORDER
PER SUDHANSHU SRIVASTAVA, JM:
This appeal is preferred by the assessee against order dated 16.03.2018 passed by the Learned Commissioner of Income Tax (Appeals), Ghaziabad [CIT(A)] for Assessment Year 2010-11, wherein he has confirmed the imposition of penalty of Delhi Public School Ghaziabad Society vs. DCIT Rs.61,98,600/- u/s 271(1)(c) of the Income tax Act, 1961 (hereinafter called ‘the Act’).
2.0 At the outset, the Ld. Authorized Representative (AR) submitted that in the quantum appeal, the assessee has already succeeded before the Tribunal and, therefore, the impugned penalty does not survive. He placed on record a copy of the order of the ITAT in quantum proceedings, wherein the Co-ordinate Bench of the Tribunal has reversed the order of the Ld. CIT(A) wherein he had held that the assessee was engaged in commercial activity in view of it providing transportation facilities to the students on payment of certain fees.
3.0 The Ld. Sr. Departmental Representative (DR) supported the order of the Lower Authorities, but fairly accepted that since the quantum has been decided in favour of the assessee by the Tribunal, the penalty does not survive.
4.0 Having heard both the parties and after having gone through the order of this Tribunal in the quantum proceedings in Delhi Public School Ghaziabad Society vs. DCIT Tribunal has held that provisions of Section 11(4A) of the Act do not apply to the assessee. Therefore, in view of such adjudication by the Tribunal, the impugned penalty does not survive.
Therefore, while setting aside the order of the Ld. CIT(A) we direct the deletion of the impugned penalty.
5.0 In the final result, the appeal of the assessee stands allowed.
The Above decision was announced on conclusion of Virtual Hearing on 18th December, 2020