SUBHASH RASTOGI,NEW DELHI vs. ITO, WARD- 19(3), NEW DELHI

Brief facts of the case are that on 17.2.2009, the assessee filed return of income for the Asstt. Year 2008-09 declaring an income of Rs.2 lacs. Learned AO, however, made certain additions and assessed the income at Rs.94,18,280/- Appeal preferred by the assesee was dismissed by the ld. CIT(A). Learned AO proceeded with the matter and levied a penalty of Rs.7,07,206/- u/s 271(1)(c) of the Income-tax Act, 1961 (“the Act”).

Today assessee pleaded for an early hearing in the matter on the ground that the quantum appeal preferred by the assessee to the Tribunal was decided by a coordinate bench of this Tribunal in by order dated 20.11.2018 deleting the addition in question and, therefore, the penalty cannot survive. A copy of the order is produced before us and the revenue does not dispute the said fact.

We have carefully gone through the record and find that the quantum addition was deleted by a coordinate bench of this Tribunal in by order dated 20.11.2018 and, therefore, the penalty cannot survive. We, therefore, while granting early hearing request, heard this matter and taking into consideration the fact of disposal of the appeal and deletion of the addition, hold that the penalty cannot survive and the same is liable to be deleted. We order so.

In the result, appeal of the assessee is allowed.