2023 (3) TMI 1305

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..... PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the Assessee against the order of the Ld. CIT(A)-3, Ludhiana dt. 18/01/2019 pertaining to A.Y. 2007-08 challenging the confirmation of penalty under section 271(1)(c) of the Act. 2. At the outset it is noted that there is a delay of 10 days in filing the present appeal. Considering the submissions made by the Ld. AR and after hearing the Ld. DR, the delay is hereby condoned and the appeal is admitted for adjudication. 3. Briefly the facts of the case are that the case of the assessee was reopened u/s 147 on the basis of AIR information that there were certain cash deposits in his saving bank account maintained with Centurian Bank of Punjab, Ambala. Thereafter notices u/ .....

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..... een passed subsequent to the date of the impugned appellate order and as such the effect of the said order has not been considered while passing the impugned order by the Ld. CIT(A), Ludhiana, while confirming the penalty under section 271(1)(c) of the Act. It was accordingly submitted that where the addition in the quantum proceedings stands deleted, then the very foundation for levy of penalty does not exist and in light of the same, the penalty so levied and confirmed by the Ld. CIT(A) may be set aside. 8. Per contra, the Ld. DR fairly agreed that the order of the Ld. CIT(A), Panchkula deleting the quantum proceedings has been passed on 28/02/2019 subsequent to the date of the impugned order and therefore the impact thereof has not be .....

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..... tted. The same is acceptable as being reasonable and out of agricultural income during the year and past savings deposited in bank account. Thus as the assessee has satisfactorily explained the sources of impugned cash deposited therefore, the addition made is ordered to be deleted. This ground of appeal is allowed. 10. In light of above, where the whole of the addition have been deleted in the quantum proceedings by the ld CIT(A) and which has attained finality as per records, we agree with the contention of the Ld. AR that very foundation for levy of penalty no more exist. Hence the penalty so levied is hereby directed to be deleted as pronounced in the Open Court. 11. In the result, appeal of the assessee is allowed. Order pro .....

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