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Income Tax Appellate Tribunal, DELHI BENCHES : SMC-I : NEW DELHI
Before: SHRI R.S. SYAL
ORDER This appeal by the Revenue arises out of the order passed by the CIT(A) on 23.5.2014 confirming penalty of Rs.4,07,286/- imposed by the AO u/s 271(1)(c) of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2007-08.
I have heard the rival submissions and perused the relevant material on record. It is observed that the sole basis for imposition of penalty u/s 271(1)(c) is the addition of Rs.12,10,000/- made by the AO on account of disallowance of interest. This addition has been finally deleted by the Tribunal in quantum proceedings vide its order dated 17.4.2014 in CO No.290/Del/2011. In view of the fact that the very bedrock of penalty, being the addition of interest has been deleted, there remains no occasion for confirming any penalty. I, therefore, uphold impugned order in deleting the penalty.
In the result, the appeal is dismissed.
The order pronounced in the open court on 30.09.2015.