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Income Tax Appellate Tribunal, DELHI BENCH “I.2”, NEW DELHI
Before: SHRI H.S. SIDHU & SHRI PRASHANT MAHARISHI
ORDER PER H.S. SIDHU : JM
This appeal by the Assessee is directed against the impugned order dated 01.5.2019 passed by the Ld. CIT(A)-9, New Delhi on the following grounds:-
1. That the Ld. CIT(A)-9, New Delhi has erred both in law and on facts in upholding penalty of Rs. 37,44,384/- in an order dated 1.5.2019 under section 271(1)(c) of the Act.
2. That the ld. CIT(A) has failed to appreciate that in absence of any specific show cause notice having been issued, the levy of penalty is otherwise wholly misconceived.
3. That furthermore that since no valid satisfaction was recorded in the order of assessment, penalty levied is otherwise was without jurisdiction.
4. That the Ld. CIT(A) has sustained the penalty by failing to appreciate that assessment proceedings are not conclusive and could not have proceeded to validly sustain the penalty as if it is quantum appeal.
5. That the Ld. CIT(A) has failed to appreciate that there was no specific charge in the penalty order and as such, penalty upheld is vitiated.
6. That the Ld. CIT(A) has failed to appreciate the factual matrix of the case of the appellant and evidence on record and conclusions thus drawn mechanically are wholly unjustified. It is therefore prayed that the penalty levied of Rs. 37,44,384/- u/s. 271(1)© of the Act and sustained by the Ld. CIT(A) may kindly be deleted and, appeal of the appellant company be allowed.
Facts narrated by the revenue authorities are not disputed by both the parties, hence, the same are not repeated here for the sake of convenience.
At the time of hearing, Ld. Counsel of the Assessee, has stated that ITAT vide its order dated 12.7.2019 in quantum Appeal No. 1572/Del/2017 (AY 2011-12) has deleted the addition on which the penalty in dispute has been imposed. In this behalf he filed the copy of the Tribunal’s Order dated 12.7.2019 in assessee’s own case and he requested that penalty in dispute may be deleted.
On the contrary, Ld. DR has not raised any serious objection on the request of the Ld. Counsel for the assessee.
We have carefully considered the submissions and perused the records. We find that in assessee’s own case the ITAT vide its order dated 12.7.2019 in quantum appeal No. 1572/Del/2017 (AY 2011-12) has deleted the addition on which the penalty in dispute has been imposed, hence, the penalty in dispute will not survive. Accordingly, we delete the penalty in dispute in this appeal.
In the result, the Appeal filed by the Assessee stands allowed.
Order pronounced in the Open Court on 13/08/2019.