RAMESH SINGH,HARDA vs. ITO-2, HARDA

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ITA 178/IND/2019Status: DisposedITAT Indore03 June 2019AY 2008-092 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 quantum addition, which formed the basis for the penalty, had been deleted by the ITAT in a separate appeal, the penalty levied on that addition also does not survive. Therefore, the penalty was deleted.

What were the facts?

The assessee filed an appeal against a penalty imposed under Section 271(1)(c) of the Income Tax Act. The penalty was levied based on a quantum addition made by the Assessing Officer. The assessee's counsel argued that if the quantum addition is deleted, the penalty would not survive.

What were the issues?

Whether a penalty under Section 271(1)(c) can survive if the underlying addition on which it was based has 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, INDORE BENCH, INDORE

Before: SHRI KUL BHARAT & SHRI MANISH BORAD

For Appellant: Shri Ashish Goyal, Adv. and Shri N.D. Patwa, Adv, Shri R.S. Ambedker, Sr. DR
Hearing: 03.6.2019Pronounced: 03.6.2019

O R D E R Per Shri Kul Bharat, JM This appeal is filed by the assessee against the order of ld.

CIT(A)-1, Bhopal, dated 02.11.2018 challenging the confirmation of penalty at Rs.2,10,000/- imposed by the Assessing Officer u/s 271(1)(c) of the I.T. Act.

2.

At the outset of the hearing, ld. counsel for the assessee contended that quantum addition on the basis of which penalty was 2 Ramesh Singh - Penalty ITA 178 of 2019 levied by the Assessing Officer has been deleted by the ITAT, Indore, therefore, penalty would not survive in the present appeal. Ld. Sr.DR conceded the fact that the quantum addition has been deleted by the ITAT, Indore.

3.

We have heard both the parties and perused the orders of lower authorities. We find that the quantum appeal filed by the assessee bearing (A.Y. 2008-09) had been allowed by Indore Bench vide order dated 18.5.2016. Copy of the order of the Tribunal (supra) has been filed by the learned Counsel for the assessee. Thus, when the addition which formed the basis for levy of penalty u/s 271(1)(c) of the I.T. Act has been deleted, the penalty levied on the same does not survive and therefore, we delete the penalty too.

4.

In result, appeal filed by the assessee is allowed.

Order was pronounced in the open court on 03.6.2019.

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