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Income Tax Appellate Tribunal, DELHI BENCH “D” NEW DELHI
Before: SHRI AMIT SHUKLA & SHRI PRASHANT MAHARISHI
PER AMIT SHUKLA, J.M.: The aforesaid appeal has been filed by the assessee against the impugned order dated 13.03.2015, passed by Ld. CIT (Appeals)-IV, New Delhi in relation to penalty proceedings u/s.271(1)(c) for the Assessment Year 2007-08. The assessee is mainly aggrieved by levy of penalty at Rs.11,42,006/- on account of addition made as notional interest and advances made to the suppliers.
At the outset, ld. counsel for the assessee submitted that in the quantum proceedings the Tribunal vide order dated 16.06.2016 in has deleted the disallowance of interest made by the Assessing Officer and hence penalty levied on such interest cannot be sustained.
Learned Department Representative too admitted that in the quantum proceedings the addition which is subject matter of penalty has been deleted.
In view of the aforesaid facts that in the quantum proceedings, the Tribunal has deleted the disallowance on account of interest of Rs.33,92,769/-,therefore, the levy of penalty on such disallowance has no legs to stand and the same is hereby deleted.
In the result, the appeal of the assessee is allowed.
Order pronounced in the open Court on 7th August, 2018.