AZAD ALI (DECEASED) THROUGH L/H NAZIRAN KHATOON,DEHRADUN vs. ITO, WARD- 1(1), DEHRADUN

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ITA 3844/DEL/2018Status: DisposedITAT Dehradun15 December 2023AY 2007-083 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?

The Tribunal held that if the quantum assessment is quashed, the penalty proceedings stemming from it would also be invalid. Therefore, the penalty levied by the AO was directed to be deleted.

What were the facts?

The assessee's appeal was against the confirmation of penalty under Section 271(1)(c). The quantum assessment order, from which the penalty arose, had been previously quashed by the Tribunal.

What were the issues?

The primary issue was whether the penalty under Section 271(1)(c) could be sustained when the underlying assessment order was quashed due to invalid assumption of jurisdiction.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DEHRADUN CIRCUIT BENCH: DEHRADUN

For Respondent: Smt. Poonam Sharma, Addl
Hearing: 14/12/2023Pronounced: 15/12/2023

Appellant By None Respondent by Smt. Poonam Sharma, Addl. CIT-DR Date of Hearing 14/12/2023 Date of Pronouncement 15/12/2023 ORDER

PER M.BALAGANESH, AM:

1.

This appeal of the assessee arises out of the order of the Learned Commissioner of Income Tax (Appeals)-Haldwani

[hereinafter referred to as ‘Ld. CIT(A)’] in Appeal

No.10030/CIT(A)/DDN/2016-17 dated 22/03/2018 against the order passed by Income Tax Officer, Ward-2(1), Dehradun

Azad Ali (Deceased) through L/H Naziran Khatoon vs. ITO

(hereinafter referred to as the ‘Ld. AO’) u/s 143(3) of the Income

Tax Act, 1961 (hereinafter referred to as ‘the Act’) on 25/10/2013 for the Assessment Year 2007-08.

2.

None appeared on behalf of the assessee. We proceed to dispose of this appeal on hearing the Ld. DR and based on materials available on record.

3.

The only issue to be decided in this appeal is as to whether the Ld. CIT(A) was justified in confirming the levy of penalty u/s 271(1)(c) of the Act in the facts and circumstances of the instant case.

4.

The Ld. DR pursuant to the direction issued by the Bench on earlier date of hearing with regard to the quantum proceedings, fairly filed a letter dated 01/09/2023 before us stating that the quantum assessment has been quashed by this Tribunal on the ground of invalid assumption of jurisdiction u/s 147 of the Act without going into the merits of the case vide its order dated 23/06/2023. Once, the quantum assessment is quashed, the penalty proceedings emanating out of such quashed assessment

Azad Ali (Deceased) through L/H Naziran Khatoon vs. ITO would have no legs to stand in the eyes of law. According, penalty levied by the Ld. AO is hereby directed to be deleted.

5.

In the result, the appeal filed by the assessee is allowed Order pronounced in the open court on 15th December, 2023.

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