AI Structured Summary
Not yet generated for this judgment
Judgment
PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:-
This appeal by the Revenue is preferred against the order of the NFAC, Delhi dated 28.02.2025 pertaining to A.Y. 2017-18 against the penalty levied u/s 270A of the Income-tax Act, 1961 [the Act, for short].
At the very outset, the ld. counsel for the assessee submitted that the quantum addition made in this case for the instant year, has been deleted by the co-ordinate bench of the ITAT in ITA No. 2126/DEL/2025 for A.Y 2017-18 vide order dated 30.10.2025. Therefore, the ld. counsel for the assessee prayed that the penalty may be deleted.
Per contra, the ld. DR fairly conceded to the same.
We have heard the rival submissions and have perused the relevant material on record. We find that this issue in quantum appeal has been decided in favour of the assessee and against the Revenue by the decision of the co-ordinate Bench [supra]. In view of the above facts, the legal dictum of “Sublato Fundamento Cadit Opus”, applies meaning thereby, that in case the foundation is removed, the super structure falls. Since the foundation [quantum addition] has been removed, the super structure i.e. penalty must fall. Accordingly, we find that once the quantum has been deleted, penalty levied u/s 270A of the Act has no legs to stand. Accordingly, we direct the AO to delete the penalty.
In the result, appeal of the Revenue in ITA No. 1252/DEL/2025 is dismissed.
The order is pronounced in the open court on 11.11.2025.