SHRI DESHPAL SINGH KOHLI,DEHRADUN vs. DCIT, DEHRADUN

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ITA 2196/DEL/2017Status: DisposedITAT Dehradun20 December 2021AY 2011-123 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?

Since the quantum addition was restored to the Assessing Officer, the penalty levied under Section 271AAA, which was based on that addition, would not survive. The Tribunal restored the penalty order to the Assessing Officer for consideration along with the quantum proceedings.

What were the facts?

The assessee challenged a penalty levied under Section 271AAA. The Tribunal had previously set aside the quantum appeal and restored the addition made under Section 68 to the Assessing Officer for fresh examination.

What were the issues?

Whether the penalty under Section 271AAA can survive when the underlying addition under Section 68 has been set aside and restored to the Assessing Officer.

Which sections of the Income-tax Act were involved?

Section 271AAA,Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI “B” BENCH: NEW DELHI

Before: SHRI R. K. PANDA & SHRI C. N. PRASAD

For Appellant: Shri K. K. Juneja, Adv
For Respondent: Shri T. S. Mapwal, Sr. DR
Hearing: 20.12.2021Pronounced: 20.12.2021

ORDER PER C. N. PRASAD, JM : This appeal is filed by the assessee challenging the order of the Ld.CIT(A) in sustaining the penalty levied u/s 271AAA.

2.

The Ld. Counsel for the assessee referring to Page No. 41 to 44 of the paper book submits that the quantum appeal has been set aside by the Tribunal in of 2015 dated 17th August, 2017. The Ld. Counsel submits that this appeal is filed against levy of penalty u/s 271AAA of the Act may also be restored to the file of the Assessing Officer.

3.

Ld. DR has no objection.

4.

Heard rival submissions and perused the order of the Tribunal. The Tribunal in quantum appeal restored the addition made u/s 68 of the Act in the assessment proceedings to the file of the Assessing Officer for examination of the creditworthiness of the lenders afresh. Therefore, since the Tribunal restored the quantum addition to the file of the Assessing Officer, the penalty levied u/s 271AAA on the basis of the addition made u/s 68 in the assessment order will not survive at this stage. Thus we restore the penalty order to the file of the Assessing Officer who shall consider along with quantum proceedings.

5.

In result, the appeal of the assessee is allowed for statistical purpose.

Above decision was pronounced on conclusion of Virtual Hearing in the presence of both the parties on 20th December, 2021.

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