Successful appeal against penalty under section 271(1)(C) due to deleted additions. CIT(A) order set aside.

The appeal against the penalty under section 271(1)(C) of the Act was successful. The Tribunal had previously deleted the additions on which the penalty was based, making the penalty unsustainable. The order of the CIT(A) was set aside, and the penalty was deleted, allowing the assessee's appeal. The judgment was delivered by Shri Sunil Kumar Yadav, Judicial Member, on 20th July 2018.

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Issues:
1. Appeal against penalty under section 271(1)(C) of the Act.

Detailed Analysis:
The appeal was filed by the assessee against the penalty imposed under section 271(1)(C) of the Act, which was confirmed by the CIT(A). The counsel for the assessee argued that the additions on which the penalty was levied had been deleted by the Tribunal. It was noted that the Tribunal had indeed deleted the additions in question through its order, which was supported by the order of the Assessing Officer. The Revenue did not dispute these facts, leading to a crucial point in the case.

Upon careful examination of the Tribunal's order and the lower authorities' decisions, it was established that the additions for which the penalty was imposed had already been deleted by the Tribunal in its order dated 23.03.2017. Consequently, it was concluded that the penalty under section 271(1)(C) was not legally sustainable. Therefore, the order of the CIT(A) was set aside, and the penalty was deleted, resulting in the allowance of the assessee's appeal.

The judgment was pronounced in an open court on 20th July 2018 by Shri Sunil Kumar Yadav, Judicial Member. The detailed analysis highlighted the crucial aspect of the Tribunal's previous order deleting the additions that formed the basis of the penalty, leading to the decision to overturn the penalty imposed under section 271(1)(C) of the Act.

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