M/S. VIPUL MOTORS PVT. LTD.,FARIDABAD vs. DCIT, NEW DELHI

These two separate appeals by the assessee are preferred against two separate orders of the CIT(A) - 19, New Delhi dated 07.07.2014 pertaining to A.Ys 2003-04 & 2004-05.

In both these appeals, the assessee aggrieved by the levy of penalty u/s 271(1)(c) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' amounting to Rs. 5,51,250/- in A.Y 2003-04 and Rs. 37,287/- in A.Y 2004-05.

At the very outset, the ld. AR stated that the quantum additions which were challenged before the Tribunal have been decided in favour of the assessee and against the Revenue. The ld. AR provided copy of the order of the Tribunal dated 23.05.2018.

The ld. DR could not bring any distinguishing decision in favour of the Revenue.

We have considered the orders of the authorities below and have duly taken into consideration the order of the co ordinate bench in & 5218/DEL/2013. We find force in the contention of the ld. AR. The additions which form basis for levy of penalty u/s 27191)(c) of the Act have been deleted by the Tribunal in the aforementioned order. Since the foundation has been removed, the super structure must fall. The AO is directed to delete the penalty levied in the respective A.Ys.

In the result, both the appeals of the assessee in & 5078/DEL/2013 are allowed.