INCOME TAX OFFICER (EXEMPTION), BHOPAL vs. M/S HERO'S EDUCATION AND WELFARE SOCIETY, BHOPAL
What did the Tribunal hold?
The Tribunal held that since the quantum additions, which formed the basis for the penalty, were deleted by a previous ITAT order, the penalty itself would not survive. Therefore, the order of the CIT(A) confirming the deletion of the penalty was upheld.
What were the facts?
The Revenue appealed against the deletion of a penalty imposed under Section 271(1)(c) of the Income Tax Act. The penalty was levied based on certain additions made by the Assessing Officer.
What were the issues?
Whether a penalty under Section 271(1)(c) can survive if the underlying additions are deleted. The validity of the penalty in light of the deletion of quantum additions.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI KUL BHARAT & SHRI MANISH BORAD
O R D E R Per Shri Manish Borad, AM This appeal is filed by the Revenue against the order of ld. CIT(A)- 2, Bhopal dated 05.1.2018 challenging the deletion of penalty at Rs.39,40,000/- imposed by the Assessing Officer u/s 271(1)(c) of the I.T.
Act.
At the outset of the hearing, ld. counsel for the assessee contended that quantum addition on the basis of which penalty was levied by the Assessing Officer has been deleted by the ITAT, Indore,
2 Hero’s Education & Welfare Society therefore, penalty will not survive in the present appeal. Ld. Sr.DR conceded the fact that the quantum additions have been deleted by the ITAT, Indore.
We have heard both the parties and perused the orders of lower authorities. Learned Counsel for the assessee has filed the copy of the order of the ITAT (ITA No.232/Ind/2015, order dated 10.1.2017) wherein the quantum additions have been deleted by ITAT, Indore. Thus, we are of the view that when the additions which formed the basis for levy of penalty u/s 271(1)(c) of the I.T. Act have been deleted, the penalty levied on the same does not survive and therefore, we confirm the order of the ld. CIT(A).
In result, appeal filed by the Revenue is dismissed.
Order was pronounced in the open court on 14.5.2019.
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