The present Appeal by the Revenue preferred under section 260-A of the Income Tax Act, 1961, is directed against the common- order dated 21.01.2011 of the Income Tax Appellate Tribunal, Ahmedabad(C) in ITA No. 1838/2009 and 1839/2009 in so far as the said common order relates to ITA No. 1839 of 2009.
1.1 The appellant has raised the following question proposing it to be substantial question of law :
“(A) Whether the Appellate Tribunal is right in law and on facts in deleting the penalty of Rs. 6,20,000/- levied u/s 271(1)(c) of the Act?”
2. We heard Mr. Varun K. Patel for the Appellant/Revenue.
3. The issue is leviability of penalty under section 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as 'the act' for sake of brevity). The imposition of penalty was consequential to the additions/disallowances made by the Assessing Officer in the income of the assesses on two counts. First was on account of unproved purchase of cement from one Nirav Traders to the tune of Rs. 7,20,000/-. The second was in respect of Rs. 6,80,030 made towards labour charges payment. Those additions came to be set aside by the Commissioner of Income Tax (Appeals) in the appeal of the assesses. They were further confirmed by the Income Tax Appellate Tribunal while dismissing the appeal of the Department being ITA No. 1838 of 2009.
4. We have by separate oral judgment dated 24/08/2012 dismissed the Appeal of department being TA No. 904/2011, and the deletion of above two additions are upheld. As the additions on the basis of which the penalty under section 271 1 (c) of the Act was sought to be levied are deleted, no basis could survive for the penalty. Learned counsel for the appellant could not dispute that position.
5. In view of the above, the present appeal is meritless. No substantial question of law arises for consideration. Accordingly, the appeal is dismissed.
[V.M.SAHAI, J.] [N.V.ANJARIA, J.] cmjoshi