Tribunal confirms deletion of penalty for AY 2006-2007 under section 271(1)(c)

The Tribunal upheld the deletion of the penalty under section 271(1)(c) of the Act for the assessment year 2006-2007. The Commissioner of Income-tax (Appeals) had deleted the penalty imposed by the Assessing Officer, which was based on additions later removed by the Tribunal in quantum proceedings. As there was no indication of the Tribunal's decision being overturned or altered by the High Court, the Tribunal affirmed the deletion of the penalty. The appeal by the Revenue was dismissed on August 16, 2013.

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Issues involved: Appeal against deletion of penalty u/s 271(1)(c) of the Act for the assessment year 2006-2007.

Summary:
The appeal by the Revenue challenged the deletion of penalty u/s 271(1)(c) of the Act for the assessment year 2006-2007 by the Commissioner of Income-tax (Appeals). The Assessing Officer had imposed the penalty based on additions made in the assessment order u/s 143(3), which were later deleted by the Tribunal in quantum proceedings. Consequently, the penalty imposed by the Assessing Officer was also deleted by the learned CIT(A).

Upon reviewing the submissions and relevant material, it was observed that the learned CIT(A) had deleted the penalty on the grounds that the additions, which were the basis of the penalty, no longer existed following their deletion by the Tribunal in quantum proceedings. There was no evidence to show that the Tribunal's order had been reversed or modified by the High Court. Therefore, the Tribunal upheld the decision to delete the penalty.

In conclusion, the Tribunal dismissed the appeal, affirming the deletion of the penalty u/s 271(1)(c) of the Act for the assessment year 2006-2007. The order was pronounced on August 16, 2013.

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