SUBHASH RASTOGI,NEW DELHI vs. ITO, WARD- 19(3), NEW DELHI

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ITA 7639/DEL/2017Status: DisposedITAT Delhi19 July 2019AY 2008-093 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 quantum addition, which formed the basis for the penalty, was deleted by a coordinate bench, the penalty cannot survive and is liable to be deleted.

What were the facts?

The assessee filed a return of income declaring Rs. 2 lacs, but the AO made additions, assessing the income at Rs. 94,18,280/-. Subsequently, a penalty was levied under Section 271(1)(c).

What were the issues?

Whether a penalty under Section 271(1)(c) can survive when the underlying addition has been deleted by a higher appellate authority.

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, DELHI BENCH: ‘Friday’ NEW DELHI

Before: SHRI PRAMOD KUMAR & SHRI K. NARASIMHA CHARY

For Respondent: Ms Rinku Singh, Sr. DR
Hearing: 19.7.2019Pronounced: 19.7.2019

ORDER PER K. NARASIMHA CHARY, JM Aggrieved by the order dated 29.5.2017 passed by the Commissioner of Income-tax (Appeals)-25, Delhi {“CIT(A)} for the Asstt. Year 2008-09 in Appeal No.52/16-17, assessee preferred this appeal.

2.

Brief facts of the case are that on 17.2.2009, the assessee filed return of income for the Asstt. Year 2008-09 declaring an income of Rs.2 lacs. Learned AO, however, made certain additions and assessed the income at Rs.94,18,280/- Appeal preferred by the assesee was dismissed by the ld. CIT(A). Learned AO proceeded with the matter and levied a penalty of Rs.7,07,206/- u/s 271(1)(c) of the Income-tax Act, 1961 (“the Act”).

3.

Today assessee pleaded for an early hearing in the matter on the ground that the quantum appeal preferred by the assessee to the Tribunal was decided by a coordinate bench of this Tribunal in by order dated 20.11.2018 deleting the addition in question and, therefore, the penalty cannot survive. A copy of the order is produced before us and the revenue does not dispute the said fact.

4.

We have carefully gone through the record and find that the quantum addition was deleted by a coordinate bench of this Tribunal in by order dated 20.11.2018 and, therefore, the penalty cannot survive. We, therefore, while granting early hearing request, heard this matter and taking into consideration the fact of disposal of the appeal and deletion of the addition, hold that the penalty cannot survive and the same is liable to be deleted. We order so.

5.

In the result, appeal of the assessee is allowed.

Order pronounced in the Open Court on 19th July, 2019.

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