KUSUM LATA GARG,NEW DELHI vs. ACIT, NEW DELHI

Both these appeals filed by the assessee are directed against the order of the Commissioner of Income Tax (Appeals)- XXIV, New Delhi dated 16.02.2015 pertaining to assessment years 2003-04 & 2004-05. Since the first appellate authority has decided the appeals by a consolidated order, these were heard together and are being disposed of by this common order for the sake of convenience and brevity.

Common grievance in both these appeals relate to the levy of penalty u/s 271(1)(c) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act', though the quantum may differ.

At the very outset, the ld. AR stated that the additions/disallowances made in the assessment of the respective A.Ys have been deleted by the Tribunal, therefore, there remains no basis for levy of penalty u/s 271(1)(c) of the Act.

The ld. DR fairly conceded to this.

We have given thoughtful consideration to the orders of the authorities below. We find force in the contention of the ld. counsel for the assessee. We find that the Tribunal in and others have deleted the additions/disallowances made in the assessment. Sublato Fundamento Cadit Opus, meaning thereby, that in case the foundation is removed, the super structure falls. Since the quantum addition has been deleted and the foundation has been removed, the super structure i.e. penalty must fall.

In the result, the appeals of the assessee in & 2347/DEL/2015 are allowed.