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Income Tax Appellate Tribunal, DELHI BENCHES ‘F’, NEW DELHI
Before: SHRI R.S. SYAL & SMT.BEENA A PILLAI
PER RS SYAL, ACCOUNTANT MEMBER
This appeal by the assessee arises out of the order passed by the Ld.CIT(A)-XVII, New Delhi dated 12.08.2013 affirming the levy of penalty of Rs.4,53,474/- imposed by the Assessing Officer (A.O.)
2 u/s 271(1)(c) of the Income Tax Act, 1961 (the Act) in relation to the Assessment Year 2005-06.
Briefly stated the facts of the case are that the assessee filed return declaring loss of Rs.1,40,938/-. The A.O. on the basis of the discussion made in the assessment order made an addition of Rs.12,95,636/- and consequently computed total income at Rs.11,54,700/-. It is on the basis of this addition that he imposed penalty u/s 271(1)(c) of the Act of Rs.4,53,473/- which came to be affirmed in the First Appeal. The assessee is aggrieved by the confirmation of penalty.
Having heard the rival submissions and perusing the relevant material available on record, it is observed that the addition of Rs.12,95,636/- made by the A.O. was challenged by the assessee in quantum proceedings before the Tribunal. The said addition came to be deleted by the Tribunal vide its order dt. 31.12.2014 in ITA no.419/Del/12. In view of the fact that the very foundation for imposing the penalty, being the addition of Rs.12,95,663/- stands officially deleted, there can be question of 3 any penalty u/s 271(1)(c) of the Act on this score. We therefore delete the penalty.
In the result the appeal is allowed.
The order pronounced in the open court on 16.09.2016.