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Income Tax Appellate Tribunal, DELHI BENCHES : G : NEW DELHI
Before: SHRI R.S. SYAL, AM & MS SUCHITRA KAMBLE, JM
Assessee By : Shri Pranjal Srivastava, Advocate Department By : Smt. Anima Barnwal, Sr. DR Date of Hearing : 18.05.2016 Date of Pronouncement : 18.05.2016 ORDER
PER R.S. SYAL, AM:
This appeal by the Revenue arises out of the order passed by the CIT(A) on 25.6.2015 deleting the penalty of Rs.39,09,870/- imposed by the AO u/s 271(1)(c) of the Income-tax Act, 1961. The first effective ground raised by the Revenue in its appeal reads as under:-
“i) Whether on the facts and circumstances of the case, the ld.CIT(A) is justified in allowing the appeal of the assessee on the basis of order passed by Hon’ble ITAT dated 10.12.2014 in wherein the ITAT decided that assessee be treated as registered trust though the trust was not registered u/s 12AA of the IT Act, 1961 and Hon’ble Punjab and Haryana High Court has been filed.”
At the outset, the ld. counsel for the assessee contended that the additions made in the assessment order, leading to the imposition of penalty, finally stand deleted by the Tribunal. A copy of the order dated 10.12.2014 passed by the Tribunal in was placed on record. The ld. AR ergo contended that no penalty can be allowed to stand.
The ld. DR though supported the penalty order passed by the AO, but, admitted that the contention advanced on behalf of the assessee was correct.
We have heard the rival submissions and perused the relevant material on record. It is apparent from the ground taken by the Revenue, as reproduced above, that the Tribunal has deleted the additions, leading to the imposition of penalty vide its order dated 10.12.2014. In view of the fact that the additions, constituting the bedrock of the instant penalty, cease to exist, there cannot be any question of imposing or confirming any penalty u/s 271(1)(c) of the Act. We, therefore, uphold the impugned order in deleting the said penalty. 2
4 In the result, the appeal is dismissed.
The order pronounced in the open court on 18.05.2016.