SHRI AMIT ASHOK KHURANA,VADODARA vs. THE ACIT, CIRCLE-4, VADODARA

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ITA 559/AHD/2016Status: DisposedITAT Ahmedabad19 January 2018AY 2009-102 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the additions/disallowances that led to the penalty imposition had already been reversed by a co-ordinate bench. Therefore, the basis for the penalty no longer existed.

What were the facts?

The assessee claimed a deduction under Section 54F. The Assessing Officer imposed a penalty for wrongful claim of this deduction. The assessee appealed against the penalty.

What were the issues?

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

Which sections of the Income-tax Act were involved?

Section 54F,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI S.S. GODARA & SHRI PRADIP KUMAR KEDIA

For Respondent: Shri V.K. Singh, Sr.DR

आदेश / O R D E R PER PRADIP KUMAR KEDIA - AM: The captioned appeal has been filed by the assessee against the order of the Commissioner of Income Tax(Appeals)-2, Vadodara [CIT(A) in short] dated 02/11/2015 relevant to Assessment Year (AY) 2009-10.

ITA No.559/Ahd/2016 Amit Ashok Khurana vs. ACIT,Cir-4 Asst.Year – 2009-10 - 2 - 2. The assessee is aggrieved by the order of the CIT(A) whereby penalty was imposed by the Assessing Officer on account of wrongful claim of deduction under section 54F of the Act.

3.

With the assistance of Ld. Authorized Representative for the assessee, we find that the additions/disallowances made in the quantum assessment giving rise to the imposition of penalty in appeal has been reversed by the Co-ordinate bench of Tribunal in ITA No. 2303/Ahd/2012 for A.Y. 2009-10 in assessee own case vide order dated 05.01.2017. Thus in view of the fact that the quantum additions/disallowances itself deleted, the cause of action for imposition of penalty under section 271(1)(c) ceases to exist and does not survive any more. Thus we find merit in the plea of the assessee seeking relief from the penalty imposed by the Assessing Officer and confirmed by the CIT(A). The relief sought against imposition of penalty is thus accepted.

4.

In the result appeal of the assessee is allowed. This Order pronounced in Open Court on 29/ 01/2018

Sd/- Sd/- (एस.एस.गोदारा) (�द�प कुमार के�डया) �या�यक सद�य लेखा सद�य ( S.S. GODARA ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 29/01/2018

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