Baba Alloys Private Limited vs ITO

PER YOGESH KUMAR, U.S. JM:

The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals/ National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 27/10/2025 for the Assessment Year 2013-14, wherein the Ld. CIT(A) has confirmed the order of penalty passed by the A.O. under Section 271(1)(c) of the Income Tax Act, 1961 ('Act' for short).

The Ld. Counsel for the Assessee at the outset submitted that quantum addition made by the A.O. has been deleted by the Co-ordinate Bench of the Tribunal in the Appeal filed by the Assessee in ITA No. 5119/Del/2019 for the year under consideration. Thus, submitted that the penalty-imposed consequent to the assessment order cannot be sustained.

The Ld. Departmental Representative has not disputed the above contention raised by the Assessee's Representative. Since, the quantum addition has already been deleted by the Tribunal for the year under consideration, the penalty imposed in consequent to the addition made by the A.O. cannot be sustained. Accordingly, the impugned order of the Ld. CIT(A) confirming the order of penalty for the year under considerationis hereby set side.

In the result, Appeal of the Assessee is allowed.