|The Tax Publishers2021 TaxPub(DT) 0782 (Del-Trib)
INCOME TAX ACT, 1961
Where the addition made by AO was deleted in quantum appeal, the very basis for imposition of penalty under section 271(1)(c) does not survive.
Penalty under section 271(1)(c) - Furnishing of inaccurate particulars of income - Deletion of addition in quantum appeal -
AO made addition on account of bogus purchases to the total income of assessee and simultaneously penalty proceedings were also initiated under section 271(1((c) for furnishing inaccurate particulars of its income. Held: In this case, the quantum addition made by AO on which the penalty had been levied had already been deleted by the Tribunal, which had become final, the cause for the levy of the penalty did not continue. In view of these facts, AO was directed to delete the penalty levied under section 271(1)(c).
FAVOUR : In favour of assessee.
A.Y. : 2008-09
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