THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(2), VADODARA vs. SHRI JAGDISH P. PATEL, VADODARA

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ITA 1463/AHD/2017Status: DisposedITAT Ahmedabad26 March 2019AY 2009-102 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that once the basis for the penalty (quantum additions) was deleted, the penalty itself became infructuous. Therefore, the appeal filed by the Revenue was not maintainable.

What were the facts?

The Revenue appealed against the deletion of penalty levied under Section 271(1)(c). The penalty was based on quantum additions made by the Assessing Officer. However, a Coordinate Bench of the ITAT had previously deleted these quantum additions.

What were the issues?

Whether a penalty levied under Section 271(1)(c) can sustain when the underlying quantum additions have been deleted by a higher appellate authority.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 263,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI AMARJIT SINGH

Hearing: 26/03/2019

PER AMARJIT SINGH - AM: The solitary ground of appeal of the Revenue is directed against the order of the Ld. CIT(A) for Vadodara in deleting the penalty levied u/s. 271(1)(c) of the Act to the amount of Rs. 43,69,240/-.

2.

At the outset the Ld. Counsel has brought to our notice that Coordinate Bench of ITAT has set aside the order of the Ld. CIT(A) made u/s. 263 of the Act and restore the order of AO made u/s. 143(3) of the Act. It is also brought to our notice that the Coordinate Bench of the ITAT vide ITA No. 18/Ahd/2014 dated 01.05.2017 has also deleted the quantum petition made by the AO vide assessment order u/s. 143(3) r.w.s. 263 of the Act on 18.02.2015.

ITA No. 1463/Ahd/2017 A.Y. 2009-10 2

3.

With assistance of the Ld. Representatives we have gone through the above cited orders of the Coordinate Bench of ITAT and notice that the quantum addition on the basis of which the impugned penalty was levied had been deleted by the aforesaid order of the ITAT. Ld. DR was fair enough to could not dispute the aforesaid material facts.

4.

In the light of the aforesaid facts and circumstances we are of the view that once the quantum additions were deleted on the basis of which the impugned penalty was levied, the penalty levied has become infructuous. Therefore, this appeal of the Revenue is not maintainable and the same stand dismissed.

5.

In the result, appeal of the Revenue is dismissed.

This Order pronounced in Open Court on 26/03/2019

Sd/- Sd/- (MADHUMITA ROY) (AMARJIT SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 26/03/2019 Tanmay True Copy आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file.

By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद ।

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