ACIT CENTRAL CIRCLE -14, NEW DELHI vs. GOPAL KUMAR GOYAL, NEW DELHI

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ITA 1434/DEL/2020Status: DisposedITAT Delhi22 February 2023AY 2008-092 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the quantum assessment giving rise to the penalty was quashed by a co-ordinate bench, the basis for the penalty no longer existed. Therefore, the penalty was deleted.

What were the facts?

The Revenue appealed against a penalty order under Section 271(1)(c) of the Income Tax Act. The penalty was imposed for the assessment year 2008-09.

What were the issues?

The primary issue was whether a penalty imposed under Section 271(1)(c) could survive if the underlying quantum addition was quashed.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “B” DELHI

Before: SHRI CHANDRA MOHAN GARG & SHRI PRADIP KUMAR KEDIA

For Appellant: Ms. Monika Agarwal, CA
For Respondent: Shri T. James Singson, CIT-DR

PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed by the Revenue against the order of the Commissioner of Income Tax (Appeals)-XXVI, New Delhi [‘CIT(A)’ in short] dated 30.01.2020 arising from the penalty order dated 31.03.2019 passed by the Assessing Officer under Section 271(1)(c) of the Income Tax Act, 1961 (the Act) concerning AY 2008-09.

2.

As per its grounds of appeal, the Revenue has challenged the imposition of penalty of Rs. 34,74,81,470/- imposed by the Assessing Officer u/s. 271(1)(c) of the Act.

1.

3. When the matter was called for hearing in the captioned Revenue’s appeal, the ld. counsel for the assessee at the outset submitted that the quantum assessment giving rise to addition stands quashed by the Co-ordinate Bench of the Tribunal in order dated 08.02.2023 and thus the basis for imposing penalty has faded into oblivion and has ceased to exist.

4. Having regard to the assertion made on behalf of the assessee and in the light of the order of the Co-ordinate Bench in quantum proceedings, the edifice for imposing penalty has clearly ceased to exist. Hence, the penalty imposed in question does not survive any more. Accordingly, the penalty imposed in question stands deleted.

3.

In the result, the appeal of the Revenue is dismissed. Order was pronounced in the open Court on 22.02.2023.

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