TECHNO BLAST PVT. LTD., C/O BHARAT EXPLOSIVES LTD.,,NEW DELHI vs. ACIT, NOIDA

This appeal by the assessee for the assessment year 2005-06 is directed against the order of learned CIT(A)-I, Noida dated 29th February, 2016 against the levy of penalty of `5,55,000/- under Section 271(1)(c) of the Income-tax Act, 1961.

We have heard the arguments of both the sides and perused the material placed before us. It was pointed out by the learned counsel that the penalty has been levied in respect of the disallowance of commission of `15,16,345/-. The ITAT, in the quantum appeal vide has deleted this addition. He stated that since the addition itself has been deleted, the penalty does not survive. Copy of 2 ITA-2714/Del/2016 the said order has been placed before us. We agree with the learned counsel that once the addition itself has been deleted, the penalty based upon such addition cannot survive. Accordingly, we cancel the penalty levied under Section 271(1)(c) of the Act.

In the result, the appeal of the assessee is allowed. Decision pronounced in the open Court on 22.04.2019.