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आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “एकल सद"यीय’,च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH‘SMC’ CHANDIGARH
"ीमती "दवा "संह, "या"यक सद"य BEFORE: SMT. DIVA SINGH, JM आयकर अपील सं./ ITA No. 1032/Chd/2019 "नधा"रण वष" / Assessment Year : 2010-11 M/s Abacus Edutech (P) Ltd., बनाम The Commissioner of Income Tax 276, Maya Nagar, Ludhiana. (Appeals)-3, Ludhiana. "थायी लेखा सं./PAN NO: AAACQ 0843 N अपीलाथ"/Appellant ""यथ"/Respondent
आयकर अपील सं./ ITA No. 1033/Chd/2019 "नधा"रण वष" / Assessment Year : 2010-11 M/s Axis Education Technologies The Commissioner of Income Tax बनाम (P) Ltd., (Appeals)-3, 276, Maya Nagar, Ludhiana. Ludhiana. "थायी लेखा सं./PAN NO: AAECA 2568 G अपीलाथ"/Appellant ""यथ"/Respondent "नधा"रती क" ओर से/Assessee by : Shri Ashwani Kumar, CA राज"व क" ओर से/ Revenue by : Smt. Meenakshi Vohra, Addl.CIT सुनवाई क" तार"ख/Date of Hearing : 05/05/2021 उदघोषणा क" तार"ख/Date of Pronouncement : 11/05/2021
Hearing conducted via Webex आदेश/Order PER: DIVA SINGH, JUDICIAL MEMBER
These two appeals filed by different Assessees against separate orders
dated 28/05/2019 of Ld. CIT(A)-3, Ludhiana for the A.Y. 2010-11are being decided by a common order for the sake of convenience.
In both the appeals, the only grievance of the respective assessees is the action of the ld. CIT(A) in sustaining the respective penalty orders passed by 2 ITA 1032 & 1033/Chd/2019 M/s Abacus Edutech (P) Ltd. Vs CIT(A) & 1 Anr. the A.O. U/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as,
the Act).
During the course of hearing, the ld. Counsel for the assessee at the very
outset stated that the assessment order on the basis of which the impugned
penalty was levied, had been set aside by this Bench of the ITAT in ITA No. 548 &
549/Chd/2019 for the A.Y. 2010-11 vide order dated 22/04/2021 in assessee’s
own case. Copy of the said order was furnished which is placed on record.
The ld. Sr.DR, although supported the order of the authorities below but could not controvert the aforesaid contention of the ld. Counsel for the assessee.
I have considered the submissions of both the parties and perused the material available on record. In the present case, it is noticed that the assessment order dated 11/03/2016 passed by the A.O. U/s 143(3) of the Act in the case of both the assesses which were the very basis for levying penalty U/s 271(1)(c) has been quashed vide the aforesaid common order dated
22/04/2021 in ITA No. 548 & 549/Chd/2019 (supra), therefore, the addition on the basis of which the impugned penalties U/s 271(1)(c) of the Act were levied by the A.O. and sustained by the ld. CIT(A), are not in existence. In view thereof,
the impugned penalties levied by the A.O. and sustained by the ld. CIT(A)
deserve to be deleted. Support is drawn from the decision of the Hon'ble Apex
3 ITA 1032 & 1033/Chd/2019 M/s Abacus Edutech (P) Ltd. Vs CIT(A) & 1 Anr. wherein on a similar issue the Court was pleased to hold:
“Where the additions made in the assessment order on the basis of which penalty for concealment is levied, are deleted, there remains no basis at all for levying penalty for concealment and, therefore, in such a case no penalty can survive and the penalty is liable to be cancelled. Ordinarily, penalty cannot stand if the assessment itself is set aside.”
In the present cases, the basis for levying the penalties U/s 271(1)(c) are not in existence, as the assessment itself is set aside, I, therefore, by following the ratio laid down by the Hon'ble Apex Court in the aforesaid case, allow the appeals of the assessees by quashing the impugned penalties U/s 271(1)(c) of the Act levied by the A.O. and sustained by the ld. CIT(A).
In the result, both these appeals of the assessees are allowed.
(Order pronounced in the open Court on 11/05/2021) ("दवा "संह) (DIVA SINGH) "या"यक सद"य/Judicial Member Date: 11/05/2021 *Ranjan आदेश क" ""त"ल"प अ"े"षत/ Copy of the order forwarded to : 1. अपीलाथ"/ The Appellant
""यथ"/ The Respondent 3. आयकर आयु"त/ CIT 4. आयकर आयु"त (अपील)/ The CIT(A)
"वभागीय ""त"न"ध, आयकर अपील"य आ"धकरण, च"डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड" फाईल/ Guard File
आदेशानुसार/ By order,