DELHI PUBLIC SCHOOL GHAZIABAD SOCIETY,NEW DELHI vs. DCIT, EXEMPTION CIRCLE, GHAZIABAD

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ITA 7527/DEL/2018Status: DisposedITAT Delhi18 December 2020AY 2010-113 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 assessee had succeeded in the quantum appeal before the Tribunal, the penalty imposed under Section 271(1)(c) does not survive. The penalty was directed to be deleted.

What were the facts?

The assessee, Delhi Public School Ghaziabad Society, appealed against a penalty of Rs. 61,98,600 imposed under Section 271(1)(c) of the Income Tax Act. The penalty was confirmed by the CIT(A) for the Assessment Year 2010-11.

What were the issues?

The primary issue was whether the penalty under Section 271(1)(c) survives when the underlying quantum addition has been deleted by the Tribunal. The applicability of Section 11(4A) was also a related consideration.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 11(4A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘FRIDAY-A’: NEW DELHI

Hearing: 18.12.2020Pronounced: 18.12.2020

Appellant By Sh. Anoop Sharam, CA Respondent by Sh. Jagdish Singh, Sr. DR Date of Hearing 18.12.2020 Date of Pronouncement 18.12.2020 ORDER

PER SUDHANSHU SRIVASTAVA, JM:

1.

This appeal is preferred by the assessee against order dated 16.03.2018 passed by the Learned Commissioner of Income Tax (Appeals), Ghaziabad [CIT(A)] for Assessment Year 2010-11, wherein he has confirmed the imposition of penalty of Delhi Public School Ghaziabad Society vs. DCIT Rs.61,98,600/- u/s 271(1)(c) of the Income tax Act, 1961 (hereinafter called ‘the Act’).

2.0 At the outset, the Ld. Authorized Representative (AR) submitted that in the quantum appeal, the assessee has already succeeded before the Tribunal and, therefore, the impugned penalty does not survive. He placed on record a copy of the order of the ITAT in quantum proceedings, wherein the Co-ordinate Bench of the Tribunal has reversed the order of the Ld. CIT(A) wherein he had held that the assessee was engaged in commercial activity in view of it providing transportation facilities to the students on payment of certain fees.

3.0 The Ld. Sr. Departmental Representative (DR) supported the order of the Lower Authorities, but fairly accepted that since the quantum has been decided in favour of the assessee by the Tribunal, the penalty does not survive.

4.0 Having heard both the parties and after having gone through the order of this Tribunal in the quantum proceedings in Delhi Public School Ghaziabad Society vs. DCIT Tribunal has held that provisions of Section 11(4A) of the Act do not apply to the assessee. Therefore, in view of such adjudication by the Tribunal, the impugned penalty does not survive.

Therefore, while setting aside the order of the Ld. CIT(A) we direct the deletion of the impugned penalty.

5.0 In the final result, the appeal of the assessee stands allowed.

The Above decision was announced on conclusion of Virtual Hearing on 18th December, 2020

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