DCIT (EXEMPTIONS), CIRCLE-2, AHMEDABAD vs. PARAMOUNT CHARITY TRUST, BARODA

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ITA 2320/AHD/2017Status: DisposedITAT Ahmedabad29 January 2019AY 2011-122 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 since the related quantum addition, which formed the basis of the penalty, had already been deleted by a co-ordinate bench, the penalty itself must also be deleted. The foundation of the impugned penalty no longer held good in law.

What were the facts?

The Assessing Officer challenged the deletion of a penalty imposed under section 271(1)(c) for the assessment year 2011-12. The penalty was levied on the assessee, Paramount Charity Trust.

What were the issues?

Whether a penalty under Section 271(1)(c) can sustain when the underlying quantum addition has been deleted. The validity of the penalty in light of the deletion of the primary addition.

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, AHMEDABAD ‘A1’ BENCH, AHMEDABAD

Pronounced: 29.01.2019

Per Pramod Kumar, Vice President: 1. By way of this appeal, the appellant Assessing Officer has challenged correctness of the order dated 28.07.2017, passed by the learned CIT(A)-9, Ahmedabad, deleting penalty of Rs.39,11,131/- imposed on the assessee under section 271(1)(c) of the Income Tax Act, 1961 for the assessment year 2011-12.

2.

So far as the grievance of the Assessing Officer is concerned, learned representatives fairly agree that the related quantum addition itself stands deleted, vide order dated 27.04.2018, by a co-ordinate bench of this Tribunal and hence the very foundation of impugned penalty ceases to hold good in law. The impugned penalty, therefore, must also be deleted. We order so.

3.

In the result, appeal filed by the Revenue is dismissed. Pronounced in the open Court today on the 29th day of January, 2019.

Sd/- Sd/- Justice P P Bhatt Pramod Kumar (President) (Vice President) Ahmedabad, dated the 29th day of January, 2019

ITA No.2320/Ahd/2017 Assessment Year: 2011-12 Page 2 of 2

PBN/*

Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) DR (6) Guard File

By order

Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad

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