DILBAGH RAI CHAWLA,NEW DELHI vs. ACIT, NEW DELHI

This appeal is preferred by the assessee against order dated 22.3.2017 passed by the Ld. Commissioner of Income Tax (Appeals) – 30, New Delhi {CIT(A)} for assessment year 2006-07 wherein the Ld. CIT (A) has upheld the imposition of penalty of Rs. 12,74,889/- imposed u/s 271(1)(c) of the Act.

Dilbagh Rai Chawla vs ACIT 2.0 At the outset, the Ld. Authorised Representative submitted that the assessee’s appeal in the quantum proceedings has been allowed vide order dated 8.8.2017 in ITA No. 257/Del/2013. A copy of the said order was placed on record and it was submitted that in view of quantum addition having been deleted, the resultant penalty would not survive.

3.0 The Ld. CIT (DR) fairly accepted that the quantum had been deleted by the ITAT and, therefore, penalty would not survive.

4.0 Having heard both the parties and after having perused the order of the Tribunal, we agree with the contention of the Ld. AR that the impugned penalty does not survive as the quantum addition has been deleted by the order of the ITAT in ITAT No.275/Del/2013 vide order dated 8.8.2017. The order of the Ld. CIT (A) is set aside and penalty is deleted.

5.0 In the final result the appeal of the assessee stands allowed.