RAMESH CHAND,ROORKEE vs. DCIT, CIRCLE, HARIDWAR
In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal had previously deleted the quantum addition which formed the basis for the penalty. Therefore, the penalty no longer survived.
What were the facts?
The assessee appealed against a penalty levied by the AO and sustained by the CIT(A). The penalty was based on an addition made in the assessment order.
What were the issues?
Whether the penalty under Section 271(1)(c) survives when the underlying addition has been deleted by the Tribunal.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH : B : NEW DELHI
Before: SHRI R.K. PANDA & SHRI CHALLA NAGENDRA PRASAD
BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER Assessment Year: 2007-08 Ramesh Chand, Vs. DCIT, C/o Hemant Arora & Co., Circle, LLP, 354-B, 30 Civil Lines, Haridwar. Roorkee. PAN: AUAPC2368R (Appellant) (Respondent) Assessee by : Shri Hemant Arora, CA & Shri Pavitra Arora, Advocate Revenue by : Shri N.C. Upadhyay, Sr. DR Date of Hearing : 21.12.2021 Date of Pronouncement : 21.12.2021 ORDER
PER R.K. PANDA, AM:
This appeal filed by the assessee is directed against the order dated 22nd March, 2018 of the CIT(A), Haldwani, relating to Assessment Year 2007-08.
Although a number of grounds have been raised by the assessee, these all relate to the order of the CIT(A) in confirming the penalty of Rs.23,91,870/- levied by the AO u/s 271(1)(c) of the IT Act.
The ld. Counsel for the assessee, at the outset, filed a copy of the order of the Tribunal vide order dated 22.09.2021 for AY 2007- 08 and submitted that the Tribunal has deleted the addition made by the AO and sustained by the CIT(A). Therefore, the penalty does not survive. He accordingly submitted that the penalty levied by the AO and sustained by the CIT(A) should be deleted.
The ld. DR, on the other hand, fairly conceded that the Tribunal has deleted the addition in quantum appeal.
After hearing both the sides, we find the Tribunal has already deleted the quantum addition which is the basis for levy of penalty u/s 271(1)(c) in the instant case. Since the addition has already been deleted by the Tribunal, therefore, the penalty does not survive. Accordingly, the order of the CIT(A) is set aside and the AO is directed to delete the penalty.
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