BABLI KUKREJA,NEW DELHI vs. ACIT CENTRAL CIRCLE-15, NEW DELHI

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ITA 153/DEL/2021Status: DisposedITAT Delhi21 February 2022AY 2006-074 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the addition on which the penalty was levied had already been deleted by the Tribunal in a previous order. Therefore, the levy of penalty was not sustainable.

What were the facts?

The assessee's appeal was against the CIT(A)'s order confirming a penalty levied under Section 271(1)(c). The penalty was based on an addition that had been made by the AO.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the underlying addition 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, DELHI BENCH ‘A’, NEW DELHI

Before: SH. N. K. BILLAIYA & SH. YOGESH KUMAR US

For Respondent: Shri Kanav Bali, Sr. DR
Hearing: 21/02/2022Pronounced: 21/02/2022

PER N. K. BILLAIYA, AM:

1.

This appeal by the assessee is preferred against the order of the CIT(A)-23, New Delhi dated 31.12.2020 pertaining to A.Y.2006-07.

2.

The sum and substance of the grievance of the assessee is that the CIT(A) erred in confirming the penalty levied u/s. 271 (1) (c) of the Act by the AO amounting to Rs.37,65,704/-. 3. At the very outset the counsel for the assesee stated that the impugned addition on which the penalty has been levied has been deleted by the Tribunal vide order dated 27.09.2021 in ITA No.2479/Del/2017. 4. The DR fairly conceded to this. 5. We have carefully perused the orders of the authorities below. We find force in the contention of the Counsel. This Tribunal in for A.Y.2006-07 at the occasion to decide on the quantum addition and after considering the detailed submissions this Tribunal held as under :-

6.

Since the quantum addition has been deleted, we do not find any merits in the levy of penalty u/s. 271 (1) (c) of the Act. We accordingly direct the AO to delete the penalty so levied.

7.

In the result, the appeal filed by the assessee is allowed. 8. The order is pronounced in the open court on 21.02.2022 in the presence of both the rival representatives.

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