SHALIMAR TOWN PLANNERS PVT. LTD.,NEW DELHI vs. DCIT, CENTRAL CIRCLE-32, NEW DELHI

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ITA 4788/DEL/2018Status: DisposedITAT Delhi09 October 2020AY 2009-103 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 additions forming the basis of the penalty were deleted in the quantum appeal, the penalty could not survive. Therefore, the penalty was cancelled.

What were the facts?

The assessee's appeal for assessment year 2009-10 was directed against a penalty imposed under Section 271(1)(c). The assessee pointed out that the quantum appeal, on which the penalty was based, had already been allowed by the ITAT.

What were the issues?

Whether a penalty imposed under Section 271(1)(c) can survive if the underlying additions are deleted in the quantum appeal.

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, IN THE INCOME TAX APPELLATE TRIBUNAL

Before: JUSTICE P.P. BHATT, HON’BLE & BEFORE JUSTICE P.P. BHATT, HON’BLE & BEFORE JUSTICE P.P. BHATT, HON’BLE & JUSTICE P.P. BHATT, HON’BLE & SHRI G.S. PANNU, HON’BLESHRI G.S. PANNU, HON’BLESHRI G.S. PANNU, HON’BLESHRI G.S. PANNU, HON’BLE

For Respondent: Shri Shailesh Kumar, Senior DR
Hearing: 09.10.2020Pronounced: 09.10

PER G.S. PANNU, VICE PER G.S. PANNU, VICE PRESIDENT PER G.S. PANNU, VICE PER G.S. PANNU, VICE PRESIDENT PRESIDENT : PRESIDENT

1.

This appeal by the assessee for the assessment year 2009-10 is directed against the order of learned CIT(A)-30, New Delhi dated 16th May, 2018.

2.

At the time of Virtual Hearing of the early hearing application filed by the assessee, nobody appeared on behalf of the assessee. Considering the submissions of the assessee made in the said application, and with the consent of learned Senior DR, we proceeded to decide the instant appeal qua the assessee.

2 ITA-4788/Del/2018

3.

The only ground raised by the assessee in this appeal is against the levy of penalty of `4,87,111/- imposed u/s 271(1)(c) of the Income- tax Act, 1961.

4.

It has been pointed out by the learned counsel for the assessee in its letter dated 17th September, 2020 that the quantum appeal of the captioned assessment year against which the aforesaid penalty is levied, has been allowed by the ITAT ‘G’ Bench, New Delhi vide order dated 30th June, 2020 in ITA No.2312/Del/2013. A copy of the said order of the Tribunal has also been filed on record. It has, therefore, been prayed that the penalty may also be deleted.

5.

Learned Senior DR relied upon the orders of authorities below.

6.

We have carefully considered the submissions made by the assessee in its application and perused the material placed before us. Since the additions itself have been deleted by the ITAT, the penalty based upon such additions cannot survive. We, therefore, cancel the penalty levied u/s 271(1)(c) of the Act.

7.

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

Above decision was announced on conclusion of Virtual Hearing on 9th October, 2020.

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