COMMISSIONER OF INCOME TAX vs. DLF COMMERCIAL DEVELOPERS

ITA - 1268 / 2010HC Delhi31 August 20101 pages

For Petitioner: PL BANSAL

AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue was devoid of merit and dismissed it. The Court reasoned that it is a trite law that when an assessee succeeds in the quantum appeal, there is no question of imposing any penalty. Since the Revenue's quantum appeal (ITA No. 1213/2008) had already been dismissed, the penalty imposed on the assessee could not be sustained. Therefore, the Tribunal's order setting aside the penalty was upheld. The operative direction was the dismissal of the Revenue's appeal, with no order as to costs.

What were the facts?

The Revenue (Commissioner of Income Tax) filed an appeal against an order dated 6th May, 2009, passed by the Income Tax Appellate Tribunal (ITAT) in ITA No.2856/Del/2008. This ITAT order pertained to the assessment year 2002-03 and had set aside a penalty imposed on the assessee, DLF Commercial Developers. The High Court noted that in a related quantum appeal (ITA No. 1213/2008), also filed by the Revenue, the Revenue had been unsuccessful, and the quantum appeal had been dismissed. The present appeal by the Revenue challenges the ITAT's decision to set aside the penalty.

What were the issues?

1. Whether the Tribunal was justified in setting aside the penalty order when the quantum appeal preferred by the Revenue was dismissed. (Question of law) Assessee's Contention: The judgment does not record any specific contentions made by the assessee. However, the High Court's reasoning implies that the assessee would have argued that no penalty can survive if the underlying addition or demand in the quantum appeal is deleted or dismissed. Revenue's Contention: The judgment does not explicitly record the Revenue's contentions. However, the fact that the Revenue filed the appeal suggests they contended that the penalty should have been upheld despite the dismissal of the quantum appeal.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . 8 . ITA 1268/2010 and CM No.15183/2010 . . COMMISSIONER OF INCOME TAX ..... Appellant Through: Ms.Prem Lata Bansal, Advocate . . . . Versus . . DLF COMMERCIAL DEVELOPERS ..... Respondent Through: Mr.Manu Monga, Advocate . . CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE MANMOHAN . O R D E R 31.08.2010 . Heard Mrs.Prem Lata Bansal, learned counsel for the revenue and Mr.Manu Monga, learned counsel for the assessee. In the present appeal preferred by the revenue, the challenge is to the order dated 6th May, 2009 passed in ITA No.2856/Del/2008 pertaining to the assessment year 2002-03 whereby the tribunal has set aside the order imposing penalty. Be it noted that in the quantum appeal forming the subject matter of ITA No. 1213/2008 preferred by the revenue has been dismissed. It is trite law that when an assessee has succeeded in the quantum appeal, there is no question of imposition of any penalty. ITA 1268/2010 Page 1 of 2 In view of the aforesaid, the present appeal, being devoid of merit, stands dismissed without any order as to costs. . . CHIEF JUSTICE . . . MANMOHAN, J AUGUST 31, 2010 sv . . . . . . . . . . . . . . . . . . . . . . . . . . . . ITA 1268/2010 Page 2 of 2 .

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