ADITYA VERMA,DEHRADUN vs. DCIT, CENTRAL CIRCLE, DEHRADUN

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ITA 222/DEL/2019Status: DisposedITAT Dehradun22 February 2023AY 2008-093 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 addition that formed the basis for the penalty has been deleted, the penalty cannot survive. Therefore, the penalty imposed under Section 271(1)(c) is deleted.

What were the facts?

The Assessing Officer made an addition of Rs. 4,85,440 to the assessee's income and initiated penalty proceedings under Section 271(1)(c). The penalty was confirmed by the CIT(A). However, the addition itself was later deleted by the Tribunal.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the underlying addition to income has been deleted.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DEHRADUN BENCH: ‘DB’ DEHRADUN

Before: SHRI SAKTIJIT DEY & DR. B.R.R. KUMAR

For Appellant: Ms. Pallavi, CA
Hearing: 22.02.2023Pronounced: 22.02.2023

ORDER PER SAKTIJIT DEY, JM: This is an appeal by the assessee against order dated 11.11.2018 of learned Commissioner of Income Tax (Appeals)-IV, Kanpur, confirming penalty imposed of Rs.1,50,000/- under section 271(1)(c) of the Income-tax Act, 1961 (in short ‘the Act’) pertaining to assessment year 2008-09.

2.

We have heard the parties and perused the materials on record. The assessee is a resident individual. While completing the assessment for the impugned assessment year, the Assessing Officer made addition of an amount of Rs.4,85,440/- to the income of the assessee. Based on such addition, the Assessing Officer initiated proceeding for imposition of penalty under section 271(1)(c) of the Act alleging concealment of income and furnishing inaccurate particulars of income. Ultimately, the Assessing Officer passed an order imposing penalty of Rs.1,50,000/- under section 271(1)(c) of the Act. Penalty so imposed was confirmed by learned Commissioner (Appeals). However, it is observed, assessee’s appeal contesting the addition made by the Assessing Officer, in the meanwhile, has been disposed of by the Tribunal vide & Ors. dated 31.01.2023, deleting the addition made by the Assessing Officer. Since, the addition forming the basis of the penalty imposed under section 271(1)(c) of the Act stands deleted, the penalty imposed cannot survive.

Accordingly, we delete the penalty imposed of Rs.1,50,000/- under section 271(1)(c) of the Act.

3.

In the result, the appeal is allowed, as indicated above.

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