ADDL. CIT, SPECIAL RANGE-7, NEW DELHI vs. PUNJAB NATIONAL BANK, NEW DELHI

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ITA 5655/DEL/2019Status: DisposedITAT Delhi22 November 2022AY 2013-143 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the quantum addition, which formed the basis for the penalty, was deleted by a coordinate bench, the penalty no longer survived. Consequently, the penalty imposed was deleted.

What were the facts?

The Revenue appealed against the deletion of a penalty imposed under Section 271(1)(c) of the Income Tax Act. The penalty was levied by the Assessing Officer based on a quantum addition. The assessee argued that the quantum addition was deleted by a coordinate bench of the Tribunal.

What were the issues?

Whether a penalty under Section 271(1)(c) can survive if the underlying quantum addition is deleted by a higher appellate authority.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “F” DELHI

Before: SHRI CHANDRA MOHAN GARG & SHRI PRADIP KUMAR KEDIA, AC COUNTANT MEMBER

For Appellant: Ms. Sapna Bhatia, CIT-DR
For Respondent: Shri K Sampath Adv, Shri V. Rajakumar Adv

PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed by the Revenue against the order of the Commission of Income Tax (Appeals)-VII, New Delhi [‘CIT(A)’ in short] dated 03.04.2019 arising from the assessment order dated 17.03.2016 passed by the Assessing Officer (AO) under Section 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2013-14.

1.

2. As per its grounds of appeal, the Revenue has challenged the imposition of penalty of Rs. 7,41,71,078/- imposed by the Assessing Officer u/s. 271(1)(c) of the Act.

3. When the matter was called for hearing in the captioned Revenue’s appeal, the ld. counsel for the assessee at the outset submitted that the quantum addition stands deleted by the Co-ordinate Bench of the Tribunal in order dated 28.08.2019 and thus the basis for imposing penalty has faded into oblivion and has ceased to exist.

4. Having regard to the assertion made on behalf of the assessee and in the light of the order of the Co-ordinate Bench in quantum proceedings the edifice for imposing penalty has clearly ceased to exist. Hence, the penalty imposed in question does not survive any more. Accordingly, the penalty imposed in question stands deleted.

3.

In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on 31.08.2022.

Sd/- Sd/- . [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 31.08.2022”

2.

The appellate order in thus stands substituted and merged with rectified order as per paragraph hereinabove.

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