G.S. PHARMABUTOR PVT. LTD.,NEW DELHI vs. JOINT CIT, SPECIAL RANGE-4, NEW DELHI

PDF · subscribers
ITA 705/DEL/2020Status: DisposedITAT Delhi26 July 2022AY 2015-164 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 additions forming the basis of the penalty were deleted, the penalty itself was no longer sustainable. Therefore, the penalty imposed under Section 271(1)(c) was deleted.

What were the facts?

The assessee appealed against a penalty imposed under Section 271(1)(c) of the Income-Tax Act. The penalty was based on additions made by the Assessing Officer. However, these additions were subsequently deleted by the Tribunal in the quantum proceedings.

What were the issues?

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

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: ‘B’ NEW DELHI

Before: SHRI SAKTIJIT DEY & SHRI ANADEE NATH MISSHRA

For Appellant: Shri P.S. Kashyap, CA, Shri Jagdish Singh, SR. DR
Hearing: 26.07.2022Pronounced: 26.07.2022

ORDER PER SAKTIJIT DEY, JUDICIAL MEMBER: This is an appeal by the assessee against order dated 20.12.2019 of learned Commissioner of Income-Tax (Appeals)-35, New Delhi confirming penalty imposed of Rs.13,21,969 under Section 271(1)(c) of the Income-Tax Act,1961 for the assessment year 2015-16.

2.

At the outset, learned counsel appearing for the assessee, submitted that the addition based on which the assessing officer has imposed penalty under Section 271(1)(c) of the Act, in the meanwhile, has been deleted by the Tribunal while deciding the appeal filed by the Revenue and cross objection of the assessee arising out of the quantum proceedings. In this context, he drew our attention to order dated 08.12.2021 passed by the Tribunal in and C.O. No. 61/Del/2021.

3.

Learned Departmental Representative, after perusing the order of the Tribunal, fairly agreed that the addition based on which the penalty was imposed has been deleted by the Tribunal.

4.

Having considered rival submissions and perused the material available of on record, we find that based on certain additions made by the assessing officer and partly sustained by learned Commissioner (Appeals), the assessing officer initiated proceeding for imposition of penalty under Section 271(1)(c) of the Act and ultimately passed order imposing penalty under the said provision. However, in the meanwhile, while deciding the appeal and cross objection filed respectively by the revenue and assessee in quantum proceedings, the Tribunal has deleted the entire addition. Therefore, the very basis of imposition of penalty under Section 271(1)(c) of the Act stands obliterated.

5.

In view of the aforesaid, we delete the penalty imposed under Section 271(1)(c) of the Act.

6.

In the result, the appeal is allowed.

Order pronounced in the open court on 26th July, 2022.

More judgments on Section 271(1)(c)

All 25,141 judgments and leading authorities on Section 271(1)(c) →

Recent GST High Court judgments

Search GST case law →