ACIT CENTRAL CIRCLE-II, NOIDA vs. APPLE SPONGE & POWER LTD., NEW DELHI

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ITA 1347/DEL/2022Status: DisposedITAT Delhi17 January 2023AY 2015-162 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 the penalty order does not survive in view of the earlier order quashing the assessment. However, the Revenue can seek recall of this order based on the High Court's judgment.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order. The Tribunal had previously deleted an addition by holding the assessment order invalid for the same assessment year. The Revenue acknowledged this but sought to keep the penalty order alive pending a High Court decision.

What were the issues?

Whether a penalty order can survive when the underlying assessment order has been held invalid by the Tribunal.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH : A : NEW DELHI

Before: SHRI C.M. GARG & SHRI PRADIP KUMAR KEDIA

For Appellant: Shri Nipun Mittal, CA
For Respondent: Shri Kanav Bali, Sr. DR
Hearing: 17.01.2023Pronounced: 17.01.2023

ORDER

PER C.M. GARG, JM:

1.

This appeal filed by the Revenue is directed against the order dated 08.03.2022 of the CIT(A), Kanpur-4, for Assessment Year 2015-16.

2.

The ld. Sr. DR does not controvert to the contention of the ld. AR that the Tribunal, by order dated 25.02.2022 in for same assessment yea 2015-16 has deleted the addition by holding the assessment order framed u/s 143(3) of the Act as invalid. However, the ld. CIT-DR submitted that the Revenue has filed appeal against the order dated 25.02.2022 (supra) before the Hon’ble High

Court, thus, penalty order cannot be set aside till adjudication of the matter by the Hon’ble High Court.

3.

Accordingly, in view of above factual position and orders of the Tribunal in quantum appeal quashing the assessment order, grounds of the Revenue are disposed of by holding that penalty does not survive, in view of finding of the Tribunal order dated 25.02.2022 (supra). However, before we part with the order, we make it clear that the Revenue will be entitled to seek recall of this order as per outcome of the judgement of the Hon’ble High Court, if required.

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