MS. SUNITA GUPTA,NEW DELHI vs. ACIT, NEW DELHI

This appeal filed by the assessee arises out of the order passed by the CIT(A) on 19.12.2013 in relation to the assessment year 2006-07 confirming the penalty imposed by the AO u/s 271(1)(c) of the Act.

At the time of hearing, it was submitted by the ld. AR that the addition on the basis of which the penalty was imposed has been deleted by the Tribunal vide order dated 28th June, 2016 in ITA No.3828/Del/2010. A copy of the order has been placed on record. The ld. DR did not controvert this factual position stated on behalf of the assessee.

We have heard the rival but common submissions and perused the relevant material on record. Since the addition on the basis of which the penalty has been imposed, stands deleted by the Tribunal in quantum proceedings and there is nothing on record to demonstrate that the order of the tribunal has been modified or reversed by the Hon’ble High Court, the impugned penalty cannot sustain. The same is, therefore, cancelled.

In the result, the appeal is allowed.