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Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL
Before: SHRI G.D. AGRAWALG.D. AGRAWAL & AND BEFORE SHRI G.D. AGRAWALG.D. AGRAWAL & AND SHRI KULDIP SINGH SHRI KULDIP SINGHSHRI KULDIP SINGH SHRI KULDIP SINGH
PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP :- PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP This appeal by the assessee for the assessment year 2009-10 is directed against the order of learned CIT(A)-XXXII, New Delhi dated 7th February, 2014.
We have heard the arguments of both the sides and have perused the material placed before us. The assessee had filed the return declaring loss of `23,82,956/-. The Assessing Officer disallowed the loss computed by the assessee on the ground that the assessee did not carry on any business. The penalty has been levied in view of the above disallowance of loss. However, in the quantum appeal, vide order dated 14th February, 2014 in the ITAT directed the Assessing Officer to allow depreciation as well as business expenditure. Since the disallowance of loss by the Assessing Officer on 2 ITA-2737/Del/2014 which the penalty has been levied is not accepted by the ITAT in the quantum appeal, in our opinion, the penalty based upon such disallowance of loss cannot be sustained. The same is deleted.
In the result, the appeal of the assessee is allowed. Decision pronounced in the open Court on 02.01.2017.