M/S. PLAZA CABLE INDUSTRIES LTD.,DELHI vs. DCIT, NEW DELHI

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ITA 1486/DEL/2014Status: DisposedITAT Delhi03 June 2022AY 2004-052 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 noted that a co-ordinate bench had already deleted the quantum additions. Consequently, the basis for imposing the penalty ceased to exist. Therefore, the penalty was deleted.

What were the facts?

The assessee challenged a penalty of Rs. 6,95,014 imposed under Section 271(1)(c) of the Income Tax Act for the assessment year 2004-05. The penalty was levied based on certain additions made by the Assessing Officer.

What were the issues?

Whether the penalty imposed under Section 271(1)(c) is sustainable when the underlying additions 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 “F” DELHI

Before: SHRI PRADIP KUMAR KEDIA & SHRI NARENDER KUMAR CHOUDHRY

For Appellant: Shri Rajeev Saxena, Adv, Ms. Sumangla Saxena, Adv
For Respondent: Ms. Kajal Singh, Sr.D.R

PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed by the assessee against the order of the ld. CIT(A)-XVII, Delhi dated 26.12.2013 arising from the order passed by the Assessing Officer u/s. 271(1)(c) of the Income Tax Act dated 04.11.2011 concerning Assessment Year 2004-05.

2.

As per the grounds of appeal, the assessee has challenged the imposition of penalty of Rs.6,95,014/- levied by the Assessing Officer u/s. 271(1)(c) of the Act.

1.

3. In the light of the decision of Co-ordinate Bench in order dated 02.06.2022 where the quantum addition stands deleted by the Co-ordinate Bench, the basis for imposing penalty has faded into oblivion and has ceased to exist.

4. 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 assessee is allowed. Order pronounced in the open Court on 03 June, 2022.

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