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Income Tax Appellate Tribunal, DELHI BENCHES : D : NEW DELHI
Before: SHRI R.S. SYAL & MS SUCHITRA KAMBLE
ORDER PER R.S. SYAL, AM:
This appeal by the assessee arises out of the order passed by the CIT(A) on 18.2.2014 in relation to the assessment year 2003-04.
Briefly stated, the facts of the case are that the AO made an addition amounting to Rs.8,33,86,859/- on account of transfer pricing.
The ld. CIT(A) restricted such addition in quantum appeal to Rs.7,03,05,000/-. It is on the sustenance of addition to this extent that the AO imposed penalty u/s 271(1)(c) of the Act amounting to Rs.2,58,40,000/-
After considering the rival submissions and perusing the relevant material on record, it is noticed that the assessee challenged the addition in quantum before the Hon’ble Delhi High Court. Vide its judgment dated 30.10.2015, the Hon’ble Delhi High court has deleted the transfer pricing addition amounting to Rs.8.33 crore. In view of the fact that the very foundation for the imposition and confirmation of penalty, being the addition made in quantum proceedings, does not stand, there can be no question of imposing or confirming any penalty thereon. We, therefore, order for the deletion of penalty.
In the result, the appeal is allowed.
The order pronounced in the open court on 27.10.2016.