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Facts
The assessee, Manoj Kumar Tantia, was levied a penalty under Section 271(1)(c) for Assessment Year 2015-16. This penalty was imposed by the CIT(Appeals) in sustenance of additions made in an assessment order passed under Section 153A read with Section 143(3) of the Act.
Held
The Tribunal noted that the underlying quantum additions, which formed the basis for the penalty, had already been deleted by a common order of the Tribunal (ITA No.5944/Del/2018) in the assessee's own case. The additions were deleted as no incriminating material was found during search proceedings, and reliance was placed on a third person's statement. Consequently, the Tribunal held that the penalty, being derivative from these deleted additions, could not survive.
Key Issues
Whether a penalty levied under Section 271(1)(c) is sustainable when the quantum additions forming its basis have been deleted by the Tribunal.
Sections Cited
271(1)(c), 153A, 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “E” NEW DELHI
Before: SHRI CHALLA NAGENDRA PRASAD & SHRI AVDHESH KUMAR MISHRA
सुनवाईक�तारीख/ Date of hearing: 03.04.2025 09.04.2025 उ�ोषणाक�तारीख/Pronouncement on आदेश /O R D E R PER C.N. PRASAD, J.M.
This appeal is filed by the Assessee against the order of the Ld. CIT(Appeals)-29, New Delhi dated 28/06/2024 for the AY 2015- 16 in sustaining the penalty levied u/s 271(1)(c) of the Act.
Ld. Counsel for the assessee, at the outset, submits that the additions made in the assessment order passed u/s 153A r.w.s. 143(3) of the Act were deleted by the Tribunal in dated 07/03/2025 and a copy of the order of the Tribunal is placed on record.
Ld. DR fairly submitted that additions have been deleted by the Tribunal by order dated 07/03/2025.
Heard rival submissions, perused the orders of the authorities below and the order of the Tribunal in dated 07/03/2025. We observe that the Tribunal by a common order in various assessee’s cases including the present assessee before us i.e. Manoj Kumar Tantia, in the appeal against the assessment order passed u/s 153A r.w.s. 143(3) of the Act in assessee’s case in the Tribunal by order dated 07/03/2025 following the decision taken by the Tribunal in the case of Om for the AY 2015-16 deleted the addition made in the assessment of the assessee for the reason that there were no incriminating material found from the assessee during the search and seizure proceedings and the material in the form of statement of third person was relied on in some other search operation for making the additions in the hands of the assessee. Therefore, since the quantum additions were deleted by the Tribunal in the case of the assessee the penalty levied on the basis of such quantum addition will not survive. Thus, we direct the 2 Assessing Officer to delete the penalty levied u/s 271(1)(c) of the Act for the AY 2015-16. Grounds raised by the assessee are allowed.
In the result, appeal of the assessee is allowed.
Order pronounced in the open court on 09.04.2025