LAL SAI ESTATES PVT. LTD.,NEW DELHI vs. ITO WARD - 15(1), NEW DELHI

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ITA 7920/DEL/2019Status: DisposedITAT Delhi28 June 2022AY 2007-084 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 substantive additions, upon which the penalty was levied, had been deleted by the Tribunal in the quantum appeal, the penalty could not survive independently. Therefore, the penalty was deleted.

What were the facts?

The assessee appealed against a penalty of Rs. 77,25,000 imposed under Section 271(1)(c) for the assessment year 2007-08. The penalty was based on substantive additions made by the Assessing Officer.

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.

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: ‘E’ NEW DELHI

Before: SHRI SAKTIJIT DEY & SHRI ANADEE NATH MISSHRA

For Appellant: Shri S.K. Manjani, Advocates
For Respondent: Shri Dilip Singh Kothari, CIT (DR)
Hearing: 14.06.2022Pronounced: 28.06.2022

Date of hearing 14.06.2022 Date of pronouncement 28.06.2022 ORDER

PER SAKTIJIT DEY, JUDICIAL MEMBER:

1.

This is an appeal by the assessee against order dated 13.08.2019 of learned Commissioner of Income-Tax (Appeals)-36, New Delhi, confirming the penalty imposed of Rs.77,25,000 under Section 271(1)(c) of the Income-Tax Act,1961 for the assessment year 2007- 08.

2.

At the time of hearing before us, learned counsel appearing for the assessee submitted that substantive addition based on which the penalty under Section 271(1)(c) of the Income-Tax Act,1961 was imposed, in the meanwhile, has been deleted by the Tribunal.

3.

On perusal of order dated 29.10.2018 passed in 5485, 5486/Del/2016, it is observed that while deciding the quantum appeal, Tribunal has deleted the additions made by the assessing officer.

4.

That being the factual position emerging from material available on record, penalty imposed under Section 271(1)(c) of the Act has to be deleted, as, it cannot have any independence existence in absence of the additions based on which it was imposed. Accordingly, penalty imposed is deleted.

5.

In the result, the appeal is allowed.

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