GREEN VALLEY TOWER PVT. LTD.,NEW DELHI vs. ACIT, CENTRAL CIRCLE-32, NEW DELHI

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ITA 4786/DEL/2018Status: DisposedITAT Delhi12 March 2021AY 2007-082 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 of the penalty, was deleted by a co-ordinate bench of the Tribunal, the penalty could not be sustained.

What were the facts?

The assessee challenged a penalty levied by the Assessing Officer, which was upheld by the CIT(A). The penalty was based on a quantum addition made in the assessment.

What were the issues?

Whether a penalty can be sustained when the underlying addition on which it was based has been deleted by a higher appellate authority.

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 “A” BENCH: NEW DELHI

Before: SHRI G.S. PANNU & SHRI K.NARSIMHA CHARY

Hearing: 12.03.2021Pronounced: 12.03.2021

This appeal is filed by the assessee challenging the order dated 07.05.2018 in Appeal No.144/14-15/1722 passed by Ld. Commissioner of Income Tax (Appeals)-30, New Delhi [“Ld. CIT(A)”] refusing to delete the penalty levied by the Assessing Officer by order dated 14.04.2014.

2.

At the outset, Ld.AR submitted that very basis of levy of penalty, namely, the quantum addition was deleted by a Co-ordinate Bench of this Tribunal in & 1750/Del/2013 vide order dated 15/01/2021 and, therefore, the penalty cannot be sustained. He produced the copy of order dated 15.01.2021 in ITA No. 1735/Del/2013 for Assessment Year 2006-07 and ITA No. 1750/Del/2013 for Assessment Year 2007-08 wherein the quantum addition was deleted and it forms part of record.

3.

Deletion of quantum addition by a Co-ordinate Bench of this Tribunal as is evidenced from the copy of the order dated 15.01.2021 remains undisputable. In these circumstances, we are of the considered opinion that the penalty cannot survive and the same has to be deleted.

We direct the Assessing Officer to delete the same.

4.

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

Order Pronounced in the open Court on 12th March, 2021, on the conclusion of hearing over virtual mode.

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