MGCPL-VCBPL (JOINT VENTURE),NEW DELHI vs. ACIT, CIRCLE- 62(1), NEW DELHI

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ITA 3330/DEL/2018Status: DisposedITAT Delhi09 August 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 appeal related to the addition was already allowed by a co-ordinate bench, the basis for the penalty no longer existed. Therefore, the penalty was to be deleted.

What were the facts?

The assessee filed an appeal against a penalty imposed under Section 271(1)(c) of the Income-tax Act. The penalty was levied based on an addition made in the assessment order.

What were the issues?

Whether a penalty under Section 271(1)(c) can be sustained when the underlying addition has been deleted in appeal.

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 ‘E’ NEW DLEHI

Before: SHRI O.P. KANT & SHRI K. NARASIMHA CHARY

Hearing: 09/08/2021

PER K. NARASIMHA CHARY, J.M. Aggrieved by the order dated 14/03/2018 passed by the Commissioner of Income Tax (Appeals)-20, New Delhi ("Ld. CIT(A)") for the assessment year 2010-11, MGCPL-VCBPL (Joint Venture)(“the assessee”), preferred this appeal, challenging the sustenance of penalty imposed u/s. 271(1)(c) of the Income-tax Act, 1961.

2.

At the outset, learned AR submitted that by order dated 01.04.2019 in a co-ordinate Bench of this Tribunal allowed the quantum appeal of the assessee and directed the Assessing Officer to delete the addition, on account of which the impugned penalty in this appeal was levied. Learned DR does not dispute this fact.

3.

Since the quantum appeal of the assessee has been allowed by Co- ordinate Bench of this Tribunal, deleting the addition, on the basis of which the impugned penalty has been imposed, the very basis of imposition of such penalty stands collapsed. Accordingly, the appeal of the assessee has to be allowed.

4.

In the result, the appeal of the assessee is allowed.

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