BGK INFRATECH P.LTD (AMALGMATED COMPNAY OF NOVA INFRATECH P.LTD),NEW DELHI vs. DCIT, CENTRAL CIRCLE-15, NEW DELHI

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ITA 3795/DEL/2019Status: DisposedITAT Delhi06 December 2022AY 2010-112 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 since the addition in the quantum appeal was deleted, the penalty levied with respect to that addition does not survive. Consequently, the penalty was deleted.

What were the facts?

The assessee's appeal was against a penalty levied under Section 271(1)(c) of the Income Tax Act. The quantum appeal related to the same addition had previously been decided by the Tribunal.

What were the issues?

Whether a penalty levied under Section 271(1)(c) can survive when the underlying addition has been deleted in the quantum appeal.

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, DELHI BENCH, ‘A’: NEW DELHI

Before: SHRI SHAMIM YAHYA & SHRI ANUBHAV SHARMA

Hearing: 24.11.2022Pronounced: 06.12.2022

Date of Hearing 24.11.2022 Date of Pronouncement 06.12.2022 ORDER PER SHAMIM YAHYA, AM,

This appeal by the assessee is directed against the order of ld. CIT (Appeals)-23, New Delhi, dated 28.02.2019 for the Assessment Year 2010-11.

2.

The issue raised is against the levy of penalty of Rs.1,93,608/- u/s 271(1)(c) of the Act.

3.

At the outset, in this case, the Ld. Counsel for the assessee submitted that the quantum appeal in this case was decided by the Tribunal vide for Assessment Year 2010-11 vide order dated 30.09.2021 and the addition was deleted by ITAT. Hence, he pleaded that when entire addition stands deleted, the penalty levied with respect to the same, addition does not survive. The Ld. Counsel for the assessee produced before us the copy of the order of the Tribunal.

4.

The Ld. DR could not dispute proposition canvassed by the Ld. counsel for the assessee.

5.

Accordingly, in the background of the fact that in quantum appeal, the addition has been deleted by ITAT, the penalty levied in this case does not survive, hence, we set-aside the orders of the authorities below and delete the levy of penalty.

6.

In the result, the appeal of the assessee stands allowed.

Order pronounced in the open court on 06th December, 2022.

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