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Income Tax Appellate Tribunal, DELHI BENCH “F”: NEW DELHI
Before: SHRI KUL BHARAT & DR. B.R.R. KUMAR
This appeal, by the assessee, is directed against the penalty order u/s 271(1)(c) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), passed
Commissioner of Income-tax (Appeals)-XXV, New Delhi, dated 02.01.2019, pertaining to the assessment year 2009-10. The solitary effective ground raised by the assessee is as under:
“That on the basis of facts and in the circumstances of the case and in law, Ld. CIT(A) erred in making addition by enhance income of Rs. 3,27,45,060/- and thereafter imposed penalty amounting to Rs. 1,01,18,224/- (@ 100%) under section 271(1)(c) of the Income-tax Act, 1961.”
At the outset learned counsel for the assessee challenging the impugned penalty order submitted that in quantum proceedings the Coordinate Bench of this Tribunal in vide order dated 13.06.2023 has deleted the impugned addition, hence no penalty would survive.
The learned DR, on the other hand, supported the impugned penalty order.
However, he fairly conceded that the Tribunal in quantum appeal being has deleted the addition.
We have heard rival submissions and perused the material available on record. Admittedly in quantum proceedings the addition, which was the basis for imposing impugned penalty u/s 271(1)(c) of the Act, has since been deleted by the Coordinate Bench of this Tribunal vide its order dated 13.06.2023 rendered in ITA no. 7489/Del/2018. Therefore, since the very basis for levy of penalty has gone, the 271(1)(c) of the Act cannot survive and stands deleted accordingly. Ground of appeal is allowed.
Appeal of the assessee is allowed.
Order pronounced in open court on 7th August, 2023.