PUNAM DUGGAL,NEW DELHI vs. ACIT CENTRAL CIRCLE 4, NEW DELHI
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Income Tax Appellate Tribunal, DELHI BENCH ‘F’ NEW DLEHI
Before: SHRI N.K. CHOUDHRY & DR. B.R.R. KUMAR
PER N.K. CHOUDHRY, J.M.
These appeals have been preferred by the Assessee against
a consolidated order dated 07.06.2019 in various appeals
including of the Assessee, impugned herein, passed by the
learned Commissioner of Income-tax (Appeals)- 23, New Delhi
(in short “Ld. Commissioner”), u/s. 271(1)(c) r.w.s. 250(6) of
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the Income-tax Act, 1961 (in short ‘the Act’) for the assessment
years 2011-12 and 2012-13 respectively.
Brief facts, common to both these appeals and relevant for
their adjudication, are that on the basis of seizure and search
action carried out by the Revenue Department on dated
29.12.2015, the Assessing Officer, vide assessment orders dated
27.12.2017 u/s. 153A of the Act, made additions of
Rs.72,49,208/- and Rs.49,47,406/- respectively for the
assessment years 2011-12 and 2012-13 on account of
unexplained credit entries in the bank account of the Assessee.
Aggrieved by the above additions, the Assessee preferred
first appeal before the ld. Commissioner, who vide appellate
orders made enhancement to the tune of Rs.24,00,000/- and
Rs.32,00,000/- respectively.
The Assessing Officer thereafter, initiated penalty
proceedings u/s. 271(1)(c) of the Act and ultimately imposed a
3 ITA No. 5747/Del/2015
penalty of Rs.9,27,000/- and Rs.13,36,000/-, which stood
affirmed by the ld. Commissioner vide consolidated order dated
07.06.2019 passed in appeals filed against the penalty orders.
Aggrieved by the impugned order, the Assessee is in these
appeals before us.
The ld. AR of the Assessee, at the outset, claimed that the
Assessee filed appeals (ITA No. 1810/Del/2019 &
1811/Del/2019) for the years under consideration before the
Tribunal, along with batch of 51 group appeals and the Hon’ble
Tribunal vide consolidated order dated 19.01.2021 allowed the
quantum appeals of the Assessee by deleting the additions on
the basis of which the impugned penalties were levied against
the Assessee. It was therefore claimed that once the additions
on the basis of which impugned penalties are imposed, stood
deleted, the impugned penalties levied against the Assessee
cannot survive.
The ld. DR though supported the impugned order of the ld.
Commissioner, but could not refute the factual claim of the
Assessee.
4 ITA No. 5747/Del/2015
We have given thoughtful consideration to the peculiar facts
and circumstances of the case. It is not in dispute that the
quantum additions on the basis of which the impugned penalties
were levied against the Assessee, stood deleted by the Tribunal
vide order dated 19.01.2021. We, therefore, observe that once
the aforesaid quantum additions do not survive, the very basis
for imposing penalties u/s. 271(1)(c) of the Act stands collapsed
and therefore, there remains no justification for survival of the
impugned penalties. Therefore, laying our hands on the decision
of Hon’ble Supreme Court in the case of K.C. Builders vs. ACIT,
135 Taxman 461 (SC), as relied by the Assessee, wherein it is
held that where the additions made in the assessment order, on
the basis of which penalty for concealment was levied, are
deleted by the ITAT or otherwise, the penalty cannot stand by
itself and is liable to be cancelled, we are inclined to delete the
impugned penalties imposed against the Assessee. Consequently,
both the appeals of the Assessee deserves to be allowed.
5 ITA No. 5747/Del/2015
In the result, both the appeals filed by the Assessee stands
allowed.
Order pronounced in the open court on 31/01/2-23.
Sd/- Sd/-
(DR. BRR KUMAR) (N.K. CHOUDHRY)
ACCOUNTANT MEMBER JUDICIAL MEMBER
*aks/-
