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Income Tax Appellate Tribunal, DELHI BENCHES “SMC”: DELHI
Before: SHRI BHAVNESH SAINI
ORDER This appeal by assessee has been directed against the order of Ld. CIT(A), Aligarh dated 14.09.2017 for the A.Y. 2008-09, challenging the levy of penalty u/s 271(1)(c) of the Income Tax Act, 1961 (the Act).
In this case the Assessing Officer (A.O.) made addition of Rs.20 lakhs on account of unexplained investments made in cash for purchase of commercial property. The A.O. levied the penalty for the same which is confirmed by the Ld.CIT(A).
Ld.Counsel for the assessee at the outset submitted that ITAT SMC Bench Delhi in the case of the assessee in for the A.Y. under appeal vide order dated 13th October,2017 quashed the re-assessment proceedings and allowed the appeal of assessee. Ld.Counsel has submitted that since quantum addition has been deleted by quashing the reassessment proceedings, therefore, no penalty be levied. Copy of orders placed on record and provided to the Ld.D.R. who did not dispute the same.
ITA 154/Del/18 A.Y.: 2008-09 Sh. Nishchal Selhi, Ghaziabad vs. ITO, Ward 1(4) 4. Considering the above facts and in the light of order of the Tribunal, it is clear that A.O. made the addition in the reassessment proceedings upon which penalty was levied. Since reassessment proceedings have been set aside and quashed by the Tribunal, therefore, no basis is left to levy penalty against assessee. I accordingly set aside the order of authorities below and cancel the penalty.
In the result the appeal of the assessee is allowed. Order pronounced in the open Court on 13th June, 2018.