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Judgment
Bhavnesh Saini, J
This appeal by assessee has been directed against the order of Ld. CIT(Appeals)-12, New Delhi dated 16.07.2018 for AY 2007-08, challenging the levy of penalty u/s 271(1)(c) of the I.T. Act.
In this case, AO passed the assessment order u/s 143(3)/147 of the Act dated 31.03.2015 making an addition of Rs. 24,27,863/- on account of unexplained investment in purchase of property. The AO levied the penalty u/s 271(1)(c) of the Act. The Ld. CIT(A) dismissed the appeal of assessee.
Ld. Counsel for assessee submitted that assessee preferred appeal against quantum addition before ITAT 'SMC' Bench in ITA No. 1879/Del/2017 for assessment year under appeal in which the Tribunal vide order dated 31.05.2019 quashed the reassessment proceedings. Copy of the order is placed on record and provided to the Ld. DR.
After hearing both sides, I am of the view that no penalty is leviable in the matter. Since, reassessment order which is the basis of levy of penalty has been quashed. Therefore, nothing survives in favour of the Department to levy the penalty.
I, accordingly, set aside the orders of the authorities below and cancel the penalty.
In the result, appeal of assessee is allowed.