GHAZIABAD DEVELOPMENT AUTHORITY,GHAZIABAD vs. DCIT, EXEMPTION CIRCLE, GHAZIABAD

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ITA 8302/DEL/2018Status: DisposedITAT Delhi09 September 2022AY 2006-073 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 quantum additions, which formed the basis for the penalty, were deleted by the ITAT in prior appeals, the penalty cannot survive. Therefore, the penalty is liable to be deleted.

What were the facts?

The assessee's appeals were against penalties levied under Section 271(1)(c) for AYs 2003-04 and 2006-07. The penalties were based on quantum additions made to the assessee's income.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the underlying additions on which it was levied have been deleted by the Tribunal.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 11,Section 2(15)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, ‘C’: NEW DELHI

Before: SHRI SHAMIM YAHYA & SHRI ANUBHAV SHARMA

For Appellant: Dr. Rakesh Gupta, Adv. &
For Respondent: Ms. Ranu Mukherjee, CIT-DR
Hearing: 06.09.2022

ORDER PER BENCH,

These are appeals by the assessee are directed against the orders of the Ld. CIT(A), Ghaziabad, both dated 31.10.2018 pertaining to Assessment Years 2003-04 and 2006-07 respectively.

2.

These appeals are against levy of penalty u/s 271(1)(c) of the Income Tax Act, 1961(hereinafter ‘the Act’) for both the Assessment Years as under:-

Sl. No. Assessment Year Amount (in Rs.) 1 2003-04 1,02,62,02,318/- 2 2006-07 1,55,68,80,766/-

3.

At the outset, in this case, the Ld. Counsel for the assessee contended that the penalty has been levied with regard to the quantum additions in the hands of the assessee, wherein, the ITAT by a common order dated 28.01.2022 for both Assessment Years in & 1829/Del/2017, deleted the additions on the basis of which the penalty has been levied. The ITAT in quantum appeals has held that the assessee is eligible for deduction u/s 11 of the Act and the matter was remanded back to the file of the Ld. CIT(A) for limited purpose for recomputing the eligible deduction in accordance with provisions of section 2(15) of the Act.

4.

We have heard both the parties and perused the records. We find that the penalty has been levied u/s 271(1)(c) of the Act and the quantum additions has been deleted by the ITAT, hence, the basis of levy of penalty does not survive. In this view of the matter, the penalty is liable to be deleted. We direct accordingly.

5.

In the result, both appeals of the assessee are allowed.

Order pronounced in the open court on 09th September, 2022.

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