DCIT,CIRCLE-II, FARIDABAD vs. NHPC LTD, FARIDABAD
What did the Tribunal hold?
The Tribunal noted that a co-ordinate bench had previously dismissed the Revenue's appeals and allowed the assessee's appeals for the same assessment year, resulting in the deletion of all additions. Consequently, the penalty levied under Section 271(1)(c) was also rendered invalid.
What were the facts?
The Revenue appealed against the deletion of penalty imposed under Section 271(1)(c) for claiming deductions under Section 80IA based on income tax borne by the assessee on employee perquisites. The Assessing Officer had made additions to the returned income, leading to the penalty.
What were the issues?
Whether the penalty imposed under Section 271(1)(c) is sustainable when the additions on which it was based have been deleted by a higher appellate authority.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI
Before: Sh. Amit ShuklaDr. B. R. R. Kumar
Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeals have been filed by the Revenue against the orders of the ld. CIT(A), Faridabad dated 10.01.2018.
Since, the issues involved in both the appeals are identical, they were heard together and being adjudicated by a common order.
In Revenue:
“1. Whether on the facts and the circumstances of the case and law, the ld. CIT(A) was right in deleting the penalty of Rs.1,49,49,530/- u/s 271(1)(c) of the Income Tax Act, 1961 imposed by the Assessing & 2054/Del/2017 2 NHPC Ltd. Officer against inaccurate particulars filed by the assessee i.e. wrongly claimed deduction u/s 80IA of Rs.2,99,54,875/- and Rs.1,50,50,111/- on account of income tax born by the assessee on perquisites of employee in respect of recommendation provided by its employees.”
We have gone through the order of the Co-ordinate Bench of ITAT for the A.Y. 2011-12 in and 297/Del/2016 order dated 26.07.2019 wherein the appeal of the revenue have been dismissed and the appeal of the assessee has been allowed resulting in deletion of all the additions made, making it imperative to delete the penalty levied u/s 271(1)(c) of the Income Tax Act, 1961 that were based on the additions made to the returned income.
In the result, both the appeals of the Revenue are dismissed. Order Pronounced in the Open Court on 15/02/2022.
More judgments on Section 271(1)(c)
- Ajaybhai Dineshbhai Bagdai, Near Central… vs The Income Tax Officer, Ward-1(2)(1), New…ITA 74/RJT/2026[2013-14]Status: Disposed19 Oct 2026AY 2013-14
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- Neo Structo Construction P. Ltd., Ahmedabad vs The Pr. CIT- 3, AhmedabadITA 1216/AHD/2026[2015-2016]Status: Disposed16 Oct 2026AY 2015-2016
- Hetal Vinodchandra Sheth, Ahmedabad vs The ITO, Ward-5(3)(1), AhmedabadITA 2370/AHD/2025[2014-15]Status: Disposed16 Oct 2026AY 2014-15
- Hetal Vinodchandra Sheth, Ahmedabad vs The ITO, Ward-5(3)(1), AhmedabadITA 2369/AHD/2025[2014-15]Status: Disposed16 Oct 2026AY 2014-15
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