KAPIL SEKHRI,NEW DELHI vs. ACIT, CENTRAL CIRCLE- 15, NEW DELHI

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ITA 6686/DEL/2018Status: DisposedITAT Delhi11 April 2022AY 2009-102 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 addition on which the penalty was levied has been deleted by a co-ordinate bench, the penalty order is unsustainable. Therefore, the penalty levied is to be obliterated.

What were the facts?

The assessee's appeal was against a penalty order under Section 271(1)(c). The penalty was levied on an addition made on account of agriculture income. This addition had previously been deleted by the Tribunal in an earlier appeal.

What were the issues?

The primary issue was whether a penalty under Section 271(1)(c) could be sustained when the underlying addition on which it was based had been deleted by a higher appellate authority.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 153A,Section 153C,Section 143(3)

AI-generated summary — verify with the full judgment below

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

Before: SHRI AAKASH DEEP JAIN & DR. BRR KUMAR

For Appellant: Shri Shailesh Kumar, Adv
For Respondent: Shri Raval J. Pradip Kumar, CIT DR
Hearing: 11.04.2022Pronounced: 11.04.2022

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeal has been filed by the assessee against the order of the ld. CIT(Appeals)-XXVI dated 23.07.2018.

2.

Following grounds have been raised by the assessee: “1. The order of the Ld. Commissioner of Income Tax (A) is arbitrary, against law and facts on record.

2. The Ld. Commissioner of Income Tax (A) failed to consider that the impugned penalty order levying the penalty of Rs.1,58,800/- u/s 271(1)(c) is bad in law, unjustified, contrary to facts and law and without recording satisfaction as per law.

3. The Ld. Commissioner of Income Tax (A) has erred in not considering the fact that original assessment order passed u/s 153A/153C/143(3) of the Income Tax Act in 2 Kapil Sekhri pursuance to which penalty have been initiated/levied have been set aside by Hon’ble Income Tax Appellate Tribunal.”

3.

The addition made on account of agriculture income of Rs.1,36,680/- has been deleted by the Tribunal in the case of the assessee in vide order dated 30.09.2021. Since, the penalty has been levied u/s 271(1)(c) on the same addition which stands deleted by the Co-ordinate Bench of the Tribunal, we hereby hold that the penalty levied be obliterated.

4.

In the result, the appeal of the assessee is allowed.

Order Pronounced in the Open Court on 11/04/2022.

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