M/S. G4S SECURE SOLUTIONS (INDIA) PVT. LTD.,,GURGAON vs. DCIT, NEW DELHI

This appeal by the assessee is preferred against the order of the Commissioner of Income Tax [Appeals]-15, New Delhi dated 16.02.2015 pertaining to A.Y 2007-08.

The sum and substance of the grievance of the assessee is that the first appellate authority erred in confirming the levy of penalty of Rs. 2.27 crores u/s 271(1)(c) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act'].

At the very outset, the ld. AR stated that in the quantum appeal, the Tribunal set aside the impugned issues to the file of the CIT(A) /TPO for fresh adjudication.

The ld. DR fairly conceded to this.

We have given thoughtful consideration to the orders of the authorities below. Penalty has been levied on account of the Arms Length Price and addition on account of royalty. We find that the Tribunal in & 1647/DEL/2012 has restored the issues to the file of the CIT(A)/TPO for fresh adjudication as per the directions given by the Tribunal. Since the quantum additions have been restored to the file of the lower authorities, we deem it fit to restore the penalty issue to the file of the AO. The AO is directed to decide the issue of levy of penalty afresh after the adjudication of quantum additions and after giving reasonable opportunity of being heard to the assessee.

In the result, the appeal of the assessee in is allowed for statistical purposes.