ITO, WARD- 14(3), NEW DELHI vs. KEY COMPONENTS (P) LTD., NEW DELHI

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ITA 4777/DEL/2019Status: DisposedITAT Delhi31 August 2022AY 2005-063 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the assessment order was found to be bad in law by the Tribunal itself, the penalty levied based on that assessment order should also fall. Therefore, the Tribunal declined to interfere with the CIT(A)'s findings.

What were the facts?

The Assessing Officer made an addition of Rs. 1.90 crores under Section 68, and subsequently levied a penalty under Section 271(1)(c). The CIT(A) deleted this penalty. The revenue appealed this deletion.

What were the issues?

Whether the penalty levied under Section 271(1)(c) can sustain when the assessment order on which it is based has been held to be bad in law.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 68,Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DELHI

Before: SH. N. K. BILLAIYA & MS. ASTHA CHANDRA

Hearing: 31/08/2022Pronounced: 31/08/2022

Date of hearing: 31/08/2022 Date of Pronouncement: 31/08/2022 ORDER PER N.K. BILLAIYA, AM:

This appeal by the revenue is preferred against the order of the CIT(A)-5, New Delhi dated 20.02.2019 for A.Y.2005-06.

2.

The solitary grievance of the revenue is that the CIT(A) erred in deleting the penalty of Rs.69,52,575/- levied by the AO u/s. 271 (1) (c) of the Act.

3.

None appeared on behalf of the assessee inspite notice we decided to proceed exparte. The DR was heard at length. Case records carefully perused. 4. Briefly stated the facts of the case are that assessment order u/s. 143 (3) /147 of the Act was passed on 30.03.2013 wherein an addition of Rs.1.90 crores was made u/s. 68 of the Act. The assessee preferred an appeal before the CIT(A) which was dismissed by him by order dated 02.12.2015. The assessee preferred further appeal before the Tribunal and the Tribunal in order dated 12.02.2019 held as under :-

5.

Since the assessment order has been held to be bad in law by this Tribunal (supra) and since the foundation has been removed the super structure i.e. the penalty should also fall. We decline to interfere with the findings of the CIT(A). The appeal filed by the revenue is dismissed.

6.

Decision announced in the open court on 31.08.2022.

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