Redtopaz Real Estates Pvt. Ltd., New ... vs Assessee

This appeal, preferred by the assessee, is directed against the order dated 17-04-2013, passed by the CIT(Appeals)-XVIII, New Delhi in appeal no. 430/11-12, sustaining the penalty of Rs. 14,50,790/- levied by the AO u/s 271(1)(c) of the I.T. Act, 1961, relating to A.Y. 2007-08.

2. Ld. counsel for the assessee at the outset contended that in quantum appeal, the ITAT Delhi Bench 'F' in ITA no. 1501/Del/2011, vide order dated 12-5-2014 has deleted the disallowance amounting to Rs. 40,95,375/- made u/s 40(a)(ia) of the Act, which was the subject matter of initiating penalty proceedings u/s 271(1)(c) of the Act.

3. Ld. DR was fair enough to admit the aforesaid factual position.

4. We have heard rival contentions and perused the material available on record. Admittedly, in quantum appeal, the disallowance made u/s 40(a)(ia) of the I.T. Act, which was the subject matter of imposition of penalty in question, has been deleted by the ITAT. Since the very base for imposition of penalty in question has gone, the penalty in question have no legs to stand. Accordingly, penalty of Rs. 14,50,790/- levied by the AO and sustained by the ld. CIT(A) u/s 271(1)(c), is cancelled.

5. In the result, assessee's appeal is allowed.

Order pronounced in open court on 23-01-2015.

Sd/- Sd/- ( H.S. SIDHU ) ( S.V. MEHROTRA ) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 23-01-2015. MP Copy to : 1. Assessee 2. AO 3. CIT 4. CIT(A) 5. DR