ACIT CIRCLE - 18(2), NEW DELHI vs. NKC PROJECTS (P) LTD., NEW DELHI
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Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI
IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘E’ NEW DELHI
SHRI SAKTIJIT DEY, JUDICIAL MEMBER & SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA No. 5742/Del/2019 Assessment Years: 2012-13
ACIT, Circle-18(2), Vs. NKC Projects (P) Ltd., New Delhi C-3/438A, GF, Janakpuri, New Delhi-1100 58 PAN :AACCN4070E (Appellant) (Respondent)
Assessee by Shri Lalit Mohan, Adv. Department by Shri Jeetender Chand, Sr. DR
Date of hearing 21.11.2022 Date of pronouncement .11.2022
ORDER PER SAKTIJIT DEY, JUDICIAL MEMBER: This is an appeal by the Revenue against order dated 02.04.2019
of learned Commissioner of Income-Tax (Appeals)-6, Delhi deleting
penalty imposed of Rs.51,31,030 under Section 271(1)(c) of the
Income-Tax Act, 1961 for the assessment year 2012-13.
2 ITA No.5742/Del./2019
At the outset, learned counsel appearing for the assessee
submitted that the addition based on which the Assessing Officer
imposed penalty under Section 271(1)(c) of the Income-Tax Act,
1961, in the meanwhile, has been deleted by the Tribunal while
deciding the quantum appeal of the assessee. In this regard, learned
counsel placed on record a copy of order dated 09.05.2022 passed by
the Tribunal in ITA No.2353/Del/2019. The Learned Departmental
Representative fairly agreed with the aforesaid submission of the
assessee.
Having considered rival submissions, we find, while completing
the assessment, the Assessing Officer disallowed an amount of
Rs.1,58,14,533 under Section 40(a)(ia) of the Act for alleged non-
deduction of tax at source. Based on the foresaid disallowance,
penalty proceedings under section 271(1)(c) of the Act was initiated
and ultimately an order was passed imposing penalty under Section
271(1)(c) of the Act. However, while deciding the quantum appeal of
the assessee, in the order referred to above, the Tribunal has deleted
the entire disallowance made under Section 40(a)(ia) of the Act. Thus,
3 ITA No.5742/Del./2019
when the disallowance is no more in existence, as a natural corollary,
penalty imposed on such non-existent disallowance cannot survive.
In view of the aforesaid, we do not find any reason to interfere
with the decision of learned Commissioner (Appeals) in deleting the
penalty. Grounds are dismissed.
In the result, the appeal is dismissed. Order pronounced in the open court on 30thNovember, 2022.
Sd/- Sd/- (ANADEE NATH MISSHRA) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 30th November, 2022. Mohan Lal
