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Judgment
PER ANUBHAV SHARMA, JM:
This appeal is preferred by the assessee against the order dated 16.08.2025 of the Ld. Commissioner of Income Tax (Appeals)-26 Delhi (hereinafter referred to as the First Appellate Authority or ‘the ld. FAA’ for short) DIN & Order No: ITBA/APL/S/250/2025-26/1079660369(1) arising out of the assessment order dated 19.03.2025 u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by DCIT, Central Circle - 13, Delhi for AY: 2013-14.
On hearing both sides we find that the issue involved is the levy of penalty on account of addition made on deemed rental income and ld. Counsel has relied the decision of Hon’ble Delhi High Court in the case of PCIT Vs. Ansal Properties and Infrastructure Ltd, reported as (2023) 152 taxmann.com 49/(2024) 460 ITR 341 (Delhi HC) wherein Hon’ble High Court has held that the issue involved was debatable at that point in time, thus, levy of penalty was deleted. The proposition of law squarely applies to the facts of case of assessee, accordingly, we allow the appeal and penalty levied is deleted.