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Judgment
PER AMITABH SHUKLA, AM
This appeal filed by the assessee is directed against the separate order of Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, New Delhi, dated 17.02.2026, arising out of penalty order dated 05.02.2022 passed under section u/s 271 of the Act for the Assessment Year 2016-17. The word ‘Act’ herein this order would mean Income Tax Act, 1961.
At the outset, ld. Counsel for the assessee submitted that this tribunal has decided the quantum appeal in favour of the appellant in terms of their order in ITA No.9525/Del/2019 and that therefore the present appeal which is contesting the penalty u/s 271(1)(c) deserves to be allowed in assessee’s favour.
The ld. DR concurred with the arguments of the appellant and did not object to the proposal.
We have heard rival submissions in the light of material placed on records. It is trite law that no penalty survives once quantum addition is deleted. Accordingly, we delete the penalty Rs.9,63,720/- u/s 271(1)(c) imposed by the ld. Assessing Officer vide his order dated 05.02.2022. The ground of appeal raised by the assessee is therefore allowed.
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 27th July, 2026.