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Income Tax Appellate Tribunal, DELHI “E” BENCH,
Before: SHRI R.K. PANDA & SHRI SUDHANSHU SRIVASTAVA
PER R.K. PANDA, ACCOUNTANT MEMBER:-
This appeal filed by the assessee is directed against the order dated 30.12.2013 of the CIT(A), Muzaffarnagar relating to A.Y. 2009-10.
Levy of penalty of Rs. 1,70,000/- u/s 271(1)(c) of the I.T. Act, 1961 by the A.O and upheld by the ld. CIT(A) is the only issue raised by the assessee in the grounds of appeal.
The ld. counsel for the assessee, at the outset, filed a copy of the order of the Tribunal, in assessee’s own case vide order dated 15.03.2016 for A.Y 2009-10 and submitted that the addition made by the A.O and upheld by the ld. CIT(A) has been deleted by the Tribunal. Since the very basis on which penalty has been levied does not survive, therefore, the penalty should be deleted.
The ld. DR on the other hand, fairly conceded that the Tribunal has deleted the addition in the quantum proceedings which is the subject matter of penalty.
5. After hearing both the sides, we find the very basis on which the penalty was levied u/s 271(1)(c) of the Act does not survive in view of the order of the Tribunal deleting the addition in quantum proceedings. Therefore, penalty levied by the A.O and upheld by the ld. CIT(A) does not survive. Accordingly, the ground raised by the assessee is allowed.
In the result, the appeal filed by the assessee is allowed Order pronounced in the open court at the time of hearing itself on 02.05.2017.