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Income Tax Appellate Tribunal, DELHI BENCH “A” BENCH NEW DELHI
Before: SHRI O.P. KANT & SHRI AMIT SHUKLA
ORDER
PER AMIT SHUKLA, JUDICIAL MEMBER:
The aforesaid appeal has been filed by the revenue against the impugned order dated 19.09.2014, passed by the Ld. CIT (Appeals)- XXVI, New Delhi for the quantum of assessment passed u/s 271(1)(c) for the A.Y. 2006-07. In the grounds of appeal, revenue has raised following grounds:- “i. The CIT (A) has erred in deleting the penalty u/s 271(1)(c) imposed by the A.O., substantive issue appeal is pending before the Hon’ble High Court. ii. The appellant craves leave to add, alter or amend any/all grounds of appeal before or during the course of hearing of appeal.”
2. At the outset, the Ld. Counsel for the assessee submitted that in the quantum proceedings, now the Hon'ble High Court has confirmed the order of the Tribunal quashing the reassessment order, vide judgment and order dated 13.2.2014 in ITA No. 768/D/2014. Not only that even on merits also Hon’ble High Court has upheld the order of the Tribunal. Thus, the ground raised by the revenue that substantive issue is pending before the Hon'ble High Court in the appeal, now stands decided. Therefore, the revenue’s appeal should be dismissed on this ground.
The Ld. DR too fairly admitted that the issue in the quantum proceedings have been decided in favour of the assessee, therefore, the penalty levied on such quantum is unsustainable.
After considering the rival submissions and on perusal of the relevant materials placed on record, first of all, it is noticed that the Learned CIT(Appeals) has noted that the Tribunal has quashed the assessment and also decided the issue on merits which was on account of deemed dividend. Now the said order of the Tribunal stands affirmed by the judgment and order of the Hon'ble High Court (supra). Thus, in light of this background, the entire penalty proceedings and levy of penalty has no legs to stand and the same is quashed. Accordingly, the appeal of the revenue is dismissed.
In the result, appeal filed by the revenue is dismissed.
Order pronounced in the open court on 03.10.2017.