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Facts
The assessee filed an appeal against an order from the National Faceless Appeal Centre (NFAC) dated 11.08.2023. The basis for the appeal was that the quantum additions, which led to the penalty, had already been deleted in the assessee's own case via an earlier ITA order dated 04.01.2023.
Held
Given that the underlying quantum additions were deleted in a previous order, the penalty levied under section 271(1)(c) of the Income Tax Act, 1961, is not sustainable and must also be deleted. The tribunal consequently allowed the assessee's appeal.
Key Issues
Whether a penalty levied under section 271(1)(c) is maintainable when the corresponding quantum additions have been deleted in an earlier order.
Sections Cited
271(1)(c) of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI
Before: Sh. Kul BharatDr. B. R. R. Kumar
ORDER
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeal has been filed by the assessee against the order of National Faceless Appeal Centre (NFAC), Delhi dated 11.08.2023.
At the outset, both the parities fairly brought to our notice that the quantum additions in this case have been deleted in assessee’s own case in order dated 04.01.2023. Hence, penalty levied u/s 271(1)(c) of the Income Tax Act, 1961 is liable to be deleted.
In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 30/05/2024.