RAJNISH TALWAR,NEW DELHI vs. ACIT, CENTRAL CIRCLE-4, NEW DELHI

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ITA 5728/DEL/2019Status: DisposedITAT Delhi16 February 2023AY 2013-142 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that if the additions on which the penalty was levied have been deleted in the quantum proceedings, then the penalty does not survive. Therefore, the assessee's plea was accepted.

What were the facts?

The assessee appealed against the penalty levied under Section 271(1)(c) of the Income Tax Act. The penalty was imposed based on additions made in the assessment proceedings. The assessee contended that the quantum additions were deleted by the ITAT in prior appeals.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the underlying additions have been deleted in quantum appeal.

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, ‘F’: NEW DELHI

Before: SHRI SHAMIM YAHYA & Ms. ASTHA CHANDRA

Hearing: 13.02.2023Pronounced: 16.02.2023

ORDER PER BENCH,

These appeals by the assessee against the common order of the Ld.

CIT(A)-23, New Delhi, dated 07.06.2019, sustaining levy of penalty u/s 271(1)(c) of the Act.

2.

At the outset, in these cases, the ld. Counsel for the assessee submitted that this ITAT in a batch of appeals including the appeals by the present assessee in quantum proceedings in 1615 & 1616/Del/2019 (AY 2013-14 to 2015-16), deleted the addition vide order dated 19.01.2021. Hence, he submitted that in this view of the matter, the penalty levied for the said addition which has been deleted does not survive. Hence, these appeals by the assessee should be allowed.

3.

Per contra, Ld. DR did not dispute this proposition.

4.

Upon careful consideration, we are of the opinion that when quantum appeals have been decided in assessee’s favour by the ITAT, this penalty levied with reference to those, deleted addition does not survive.

Hence we accept the assessee’s plea.

5.

In the result, all appeals filed by the assessee stand allowed.

Order pronounced in the open court on 16th February, 2023.

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