BHUSHAN STEEL LTD.,NEW DELHI vs. ACIT, CENTRAL CIRCLE-3, NEW DELHI

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ITA 4648/DEL/2018Status: DisposedITAT Delhi28 July 2021AY 2009-107 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 additions, which formed the basis for the penalties, had been deleted by a coordinate bench, the penalties must also be deleted. The AO was directed to delete the penalties levied.

What were the facts?

The assessee appealed against the levy of penalty under Section 271(1)(c) for AY 2009-10 and 2010-11. The penalties were levied based on quantum additions made by the Assessing Officer.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the underlying additions have been deleted by the Tribunal.

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. K.NARASIMHA CHARY

For Appellant: CA Sh. Rahul Chaurasia, CA
Hearing: 28/07/2021Pronounced: 28/07/2021

4649/Del/2018 the captioned two appeals are by the assessee preferred against the order of the CIT(A)-23, New Delhi dated 29.12.2017 pertaining to A.Y. 2009- 10 and 2010-11.

2.

Since common grievance is involved in both these appeals they were heard together and are disposed of by this common order for the sake of convenience and brevity.

3.

The common grievance in both these appeals relate to the levy of penalty u/s.271(1)(c) of the Act amounting to Rs.84,24,32,000/- in A.Y.2009-10 and Rs.23,96,46,000/- in A.Y.2010-11.

4.

At the very outset, the counsel for the assessee pointed out that the quantum additions on the basis of which the impugned penalties have been levied in the captioned assessment years have been deleted by the Tribunal.

5.

Per contra the DR fairly conceded to this.

6.

We have carefully considered the orders of the authorities below and the decision of this Tribunal in and 1491/Del/2018 for A.Y.2009-10 and 1601/Del/2018 and 1492/Del/2018 for A.Y.2010-11.

7.

We find force in the contention of the counsel the coordinate Bench in its judgment (supra) has deleted the quantum additions.

The relevant findings of the Tribunal read as under :-

8.

Since the foundation has been removed the superstructure must fall. The AO is directed to delete the penalty so levied in both the assessment years under consideration.

9.

In the result, both the appeals filed by the assessee are allowed.

10.

Decision announced in the open court in the presence of both the representatives on 28.07.2021.

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