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Income Tax Appellate Tribunal, DELHI BENCH: ‘D’, NEW DELHI
Before: SHRI AMIT SHUKLA & SHRI O.P. KANT
Date of hearing 14.01.2020 Date of pronouncement 31.01.2020 ORDER PER O.P. KANT, AM:
This appeal by the Revenue is directed against the order dated 21.09.2016 passed by the learned Commissioner of Income Tax (Appeals), Karnal, [in short ‘the CIT(A)’] for assessment year 2010-11. The grounds raised by the Revenue are reproduced as under:
1. On the facts and in circumstances of the case, the Ld. Commissioner of Income Tax(Appeals), Karnal has erred in law and facts in deleting the penalty imposed u/s 271(1)(c) of the Income Tax Act, 1961, on the basis of deletion of quantum addition by the Ld. Commissioner of Income Tax (Appeals), Rohtak, however, the Department has already filed an appeal before the Learned ITAT, New Delhi vide appeal No. 606/Del/2016, AY 2010-11, against the said appellate order of the quantum appeal and the same is pending for adjudication before the Hon’ble ITAT.
The issue in dispute raised in the appeal is in respect of deletion of the penalty by the learned CIT(A) which was levied by the Assessing Officer under Section 271(1)(c) of the Income-tax Act, 1961 (in short ‘the Act’). The grievance of the Revenue is that the learned CIT(A) deleted the penalty on the ground that quantum additions are deleted by the learned First Appellate Authority whereas the Department preferred an appeal before the Tribunal against the order of the learned First Appellate Authority in quantum proceedings.
We have heard the rival submissions of the parties on the issue in dispute. We find that the appeal filed by the Revenue in the year under consideration which was listed as Appeal No. 606/Del/2016 has been dismissed by the Tribunal on account of low tax effect. Thus, as far as quantum addition is concerned, the order of the learned First Appellate Authority is final. As the quantum addition has already been deleted, the learned CIT(A) is justified in deleting the penalty. Accordingly, we uphold the order of the learned CIT(A) on the issue in dispute. The grounds of appeal
of the Revenue are accordingly dismissed.
4. In result, the appeal of the Revenue is dismissed. Order is pronounced in the open court on 31st January, 2020.