THE DCIT-2(1), INDORE vs. M/S. D & H SECHERON ELECTRODES (P) LTD., INDORE

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ITA 373/IND/2017Status: DisposedITAT Indore08 May 2019AY 2011-123 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the deletion of the penalty by the CIT(A). Since the original addition on which the penalty was based had been deleted, the penalty was no longer sustainable.

What were the facts?

The Revenue appealed against the deletion of penalty by the CIT(A). The penalty was levied based on an addition made by the AO. The assessee argued that the addition itself was deleted by the Tribunal in a quantum appeal.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the addition forming the basis of the penalty 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 V.J. Boricha, D.R
For Respondent: Shri S.N. Agrawal, C.A
Hearing: 02.05.2019Pronounced: 08.05.2019

आदेश / O R D E R

PER KUL BHARAT, J.M: This appeal by the revenue is directed against order of the CIT(A)-1, Indore pertaining to the assessment year

[ITA 373/Ind/2017] [M/s. D&H Secheron Electrodes P Ltd., Indore] 2011-12. The solitary ground raised by the revenue reads as under:

“Whether on the facts and in the circumstances of the case the Ld. CIT(A) has erred in law by deleting the penalty of Rs.32,63,040/- levied by the A.O. u/s 271(1)(c) of the Act without appreciating the findings of the A.O.” 2. At the outset, the Ld. Counsel for the assessee submitted that the revenue has come in appeal against deletion of penalty by the Ld. CIT(A). He submitted that the addition on the basis of which penalty was levied had already been deleted by the Tribunal in quantum appeal.

Ld. D.R. conceded this fact that the addition has already been deleted on which penalty was levied. In view of the fact that the addition on the basis of which penalty was levied has already been deleted, hence we do not see any infirmity in the action deleting the penalty by the Ld. CIT(A). The ground raised by the revenue is dismissed.

[ITA 373/Ind/2017] [M/s. D&H Secheron Electrodes P Ltd., Indore] 3. In the result, the appeal filed by the revenue is dismissed.

Order was pronounced in the open court on 08.5.2019.

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