YAMUNA ESTATES P.LTD,NEW DELHI vs. ITO WD 11(3)(4), MUMBAI

This appeal by the assessee is arising out of the order of CIT(A)-18, Mumbai in Appeal No. CIT(A)-18/IT-67/ITO 8(3)(4)/2013-14 dt. 11/12/2014. Assessment was framed by ITO Ward- 8(3)(4) for the AY 2003-04 vide his order dated 30/12/2010, under section 143(3) r.w.s 147 of the Income Tax Act, 1961 (hereinafter ‘the Act’). The penalty under dispute was levied by the Assessing Officer under section 271(1)(c) of the Act vide his order dated 25/03/2013.

The only issue in this appeal of the assessee against the order of CIT(A) confirming the levy of penalty by the AO under section 271(1)(c) of the Act.

At the outset Ld. Counsel for the assessee stated that the quantum addition has been deleted by the Tribunal in vide order dt. 09/09/2015, the copy of order is placed on record. According to the Ld. Counsel once quantum addition is deleted penalty will not survive. On query from the bench, Ld. Sr Dr conceded the position and agreed that quantum has been deleted by Tribunal on which this penalty is based. In view of the above facts, that the quantum addition is deleted by the Tribunal, the penalty levied by AO and confirmed by the CIT(A) under section 271(1)(c) of the Act will not survive. Accordingly we set aside the order of the lower authority and deleted the penalty levied under section 271(1)(c) of the Act.

In the result, appeal of the assessee is allowed.