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Income Tax Appellate Tribunal, DELHI BENCH ‘D’, NEW DLEHI
Before: SHRI SAKTIJIT DEY & SHRI N.K. BILLAIYA
This is an appeal by the assessee against order dated 29.07.2022 of learned Commissioner of Income-tax (appeals)-42, Delhi confirming the penalty imposed of Rs.5,22,600/- u/s. 271(1)(c) of the Income-tax Act, 1961 for the assessment year 2012-13.
At the time of hearing, learned counsel, at the very outset, submitted that the addition, based on which, the penalty u/s. 271(1)(c) of the Act was imposed, has been deleted by the Tribunal, while deciding the quantum appeal of the assessee. Thus, she submitted, the penalty imposed cannot survive.
Learned Departmental Representative fairly agreed with the aforesaid submission of the assessee.
Having considered rival submissions and perused the materials on record, we find that the penalty imposed u/s. 271(1)(c) of the Act is based on addition of an amount of Rs.17,52,930/- u/s. 68 of the Act. However, while deciding the quantum appeal of the assessee contesting the aforesaid addition, the Tribunal in order dated 29.09.2022 in has deleted the addition. Thus, the foundation, on which the Assessing Officer has imposed penalty u/s. 271(1)(c) of the Act, is no more in existence. That being the factual position, penalty imposed u/s. 271(1)(c) of the Act cannot survive. Hence, we delete the penalty imposed u/s. 271(1)(c) of the Act.
In the result, appeal is allowed.
Order pronounced in the open court on 13/06/2023.