MAYUR EDUCATIONAL AND WELFARE SOCIETY,GHAZIABAD vs. ITO(EXEMPTION)WARD, GHAZIABAD

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ITA 7938/DEL/2018Status: DisposedITAT Delhi21 December 2021AY 2010-112 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 held that since the quantum addition, which formed the basis for the penalty, was deleted by a co-ordinate bench, the penalty imposed no longer survived. Therefore, the penalty was deleted.

What were the facts?

The assessee challenged a penalty of Rs. 14,10,000 imposed under Section 271(1)(c) of the Income Tax Act. This penalty was a consequence of additions made as anonymous donations under Section 68 read with Section 115BBC.

What were the issues?

The primary issue was whether the penalty imposed under Section 271(1)(c) could sustain when the underlying addition forming its basis was deleted.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 68,Section 115BBC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “E” DELHI

Before: SHRI KUL BHARAT & SHRI PRADIP KUMAR KEDIA

For Appellant: Shri Dinesh Kumar Jain, CA
For Respondent: Ms. Princy Singla, Sr.D.R

PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed by the assessee against the order of the ld. CIT(A), Ghaziabad dated 27.09.2018 arising from the order passed by the Assessing Officer u/s. 271(1)(c) of the Act dated 17.03.2017 concerning Assessment Year 2010-11.

2.

As per the grounds of appeal, the assessee has challenged the imposition of penalty of Rs.14,10,000/- imposed by the Assessing Officer u/s. 271(1)(c) of the Act in consequence of additions of Rs.45,50,386/- made by the Assessing Officer as anonymous donation u/s.68 r.w.s. 115BBC.

1.

3. When the matter was called for hearing, the ld. counsel for the assessee at the outset submitted that the quantum addition stands deleted by the Co-ordinate Bench of the Tribunal in order dated 28.08.2019 and thus the basis for imposing penalty has faded into oblivion and has ceased to exist.

4. Having regard to the assertion made on behalf of the assessee and in the light of the order of the Co-ordinate Bench in quantum proceedings the edifice for imposing penalty has clearly ceased to exist. Hence, the penalty imposed in question does not survive any more. Accordingly, the penalty imposed in question stands deleted.

In the result, the appeal of the assessee is allowed. 3. Order pronounced in the open Court on 21st December, 2021.

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