SH. BALWANT KUMAR,MAHENDERGARH vs. ITO, NARNAUL

This appeal by the assessee for the assessment year 2011-12 is directed against the order of learned CIT(A), Faridabad dated 24th February, 2016.

The only ground raised by the assessee in this appeal is against the levy of penalty of `47,380/- imposed u/s 271(1)(c) of the Income- tax Act, 1961.

At the time of hearing before us, it was pointed out by the learned counsel for the assessee that the penalty was levied as a result of certain additions made u/s 68 of the Act on account of bogus unsecured loans. It was submitted that in quantum proceedings for same assessment year, the ITAT, vide order dated 10th January, 2017 in 2 ITA-2250/Del/2016 , has deleted the additions made u/s 68 of the Act. A copy of the said order was placed on record. He, therefore, prayed that the penalty may also be deleted.

Learned Senior DR relied upon the orders of authorities below.

We have carefully considered the submissions of both the sides and perused the material placed before us. Since the additions itself have been deleted by the ITAT, the penalty based upon such additions cannot survive. We, therefore, cancel the penalty levied u/s 271(1)(c) of the Act.

In the result, the appeal of the assessee is allowed. Decision pronounced in the open Court on 21.12.2017.