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आदेश/Order
This is an appeal by the Department against the order dated 19.7.2018 of the Commissioner of Income Tax (Appeals)-2, Ludhiana
Following grounds have been raised in this appeal: i) Whether on the facts and circumstances of the case the Ld. CIT(A), Ludhiana has erred in law and on the facts in deleting penalty imposed u/s 271(1)(c) of the Income-tax Act, 1961 of Rs. 9,20,10,830/-. ii) That the appellant craves lead to add or amend any ground of appeal before it is finally disposed off.
During the course of hearing, the Ld. Counsel for the assessee at the very outset has stated that the additions on the basis of which the penalty u/s 271(1)(c) of the I.T. Act. 1961 was levied by the Assessing officer was
ITA No. 1260-Chd-2018 Bronze Logistics Pvt Ltd., Ludhiana
deleted by the ITAT and the relevant findings has been given by the Ld.
CIT(A) in par 5.2 of the impugned order.
In his rival submissions the Ld. DR supported the orders of the 4.
Assessing officer.
After considering the submissions of both the parties and material on
record, it is an admitted fact that the addition on the basis of which the
penalty u/s 271(1)(c) of the Act was levied by the Assessing officer has
been deleted by the ITAT.
On a similar issue, the Hon'ble Supreme Court in the case of K. C.
Builders & Others Vs ACIT (2004) 265 ITR 562 has held as under:-
“Where the additions made in the assessment order on the basis of which penalty for concealment is levied, are deleted, there remains no basis at all for levying penalty for concealment and, therefore, in such a case no penalty can survive and the penalty is liable to be cancelled. Ordinarily, penalty cannot stand if the assessment itself is set aside.”
So respectfully following the ratio laid down by the Hon'ble Apex
Court in the aforesaid referred to case, we do not find any infirmity in the
order of the Ld. CIT(A). Accordingly, we do not see any merit in the
appeal of the Department.
In the result, the appeal of the Department is dismissed.
(Order Pronounced in the Court on 08.03.2019)
Sd/- Sd/-
संजय गग� एन. के. सैनी (SANJAY GARG ) (N.K. SAINI) �या�यक सद�य/ Judicial Member उपा�य� / Vice President Dated : 08.03.2019 “आर.के.”
ITA No. 1260-Chd-2018 Bronze Logistics Pvt Ltd., Ludhiana
आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File
आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar