JCIT, SPECIAL RANGE- 1, NEW DELHI vs. AIRPORT AUTHORITY OF INDIA, NEW DELHI

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ITA 6329/DEL/2017Status: DisposedITAT Delhi25 February 2020AY 2010-112 pages

In favour of the Revenue: the Revenue's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since all the additions/disallowances on which the penalty was levied had been deleted in the quantum proceedings, no penalty was leviable. Therefore, the penalty levied by the Assessing Officer was deleted.

What were the facts?

The Revenue appealed against the deletion of penalty under Section 271(1)(c) for AY 2010-11. The penalty was levied on disallowances related to Section 14A, reversal of interest on loan, and undisclosed interest on refund.

What were the issues?

Whether penalty under Section 271(1)(c) is leviable when the underlying additions/disallowances have been deleted in quantum proceedings.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “A” NEW DELHI

Before: SHRI AMIT SHUKLA & Dr. B.R.R. KUMAR

For Appellant: Shri Rajesh Kumar, Sr.D.R

PER AMIT SHUKLA, J.M.: The aforesaid appeal has been filed by the Revenue against the impugned order dated 16.08.2017 passed by Ld. CIT(A), New Delhi in relation to penalty proceedings u/s.271(1)(c) for the Assessment Year 2010-11. In the grounds of appeal, the Revenue has challenged the levy of penalty of Rs.41,41,00,000/- u/s. 271(1)(c) on account of following disallowances:- Disallowance u/s.14A Rs.4,90,88,000/- (i) (ii) Addition on account of reversal of interest on loan portion Rs.167,61,00,000/- (iii) Addition on account of undisclosed interest received on refund from the Income Tax Department Rs.15,64,06,238/-.

1.

2. Ld. CIT(A) has deleted the penalty holding that assessee has made disclosures of all related facts of the interest provision made in 1991 and also disclosed all the facts of interest received from Income Tax Department for Assessment Year 1997-98 to 2000-01 in the appropriation account prepared during the year, therefore, penalty is not sustainable.

3. However, ld. Authorized Representative before us has stated that in the quantum proceedings, the disallowances /additions made by the Assessing Officer stands deleted from the stage of Ld. CIT(A) and also from the stage of ITAT. The copy of quantum orders of Ld. CIT (A) and Tribunal have been filed before us.

4.

Ld. DR admitted that all the issues in the quantum stands deleted.

5.

On perusal of the quantum order passed by the Tribunal in we find that all these additions/ disallowances have been deleted. When addition itself has been deleted, then no penalty is leviable on such addition. Accordingly, the penalty levied by the Assessing Officer is deleted.

6.

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

Order pronounced in the open Court on 25th February, 2020.

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