ADDL. CIT, NEW DELHI vs. M/S. AIR LINE ALLIED SERVICES LTD., NEW DELHI

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ITA 1889/DEL/2017Status: DisposedITAT Delhi11 December 2019AY 2008-093 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the additions which formed the basis for levying the penalties were deleted in the assessee's own case by a previous Tribunal order, the penalties do not survive. Therefore, the CIT(A)'s deletion of penalties was upheld.

What were the facts?

The Revenue appealed against the deletion of penalties by the CIT(A) for AY 2008-09 and 2010-11. These penalties were levied based on additions made under Section 41(1) of the IT Act.

What were the issues?

Whether penalties levied under Section 271(1)(c) are sustainable when the underlying additions under Section 41(1) have been deleted.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 41(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH : A : NEW DELHI

Before: SHRI R.K. PANDA & SHRI K. NARASIMHA CHARY

For Respondent: Shri S.S. Rana, CIT, DR
Hearing: 09.12.2019Pronounced: 11.12.2019

(Appellant) (Respondent) Assessee by : None Revenue by : Shri S.S. Rana, CIT, DR Date of Hearing : 09.12.2019 Date of Pronouncement : 11.12.2019 ORDER

PER R.K. PANDA, AM:

1.

The above two appeals filed by the Revenue are directed against the separate orders dated 06.01.2017 of the CIT(A)-22, New Delhi relating to assessment years 2008-09 & 2010-11, respectively.

2.

For the sake of convenience, these were heard together and are being disposed of by this common order.

3.

Deletion of penalty by the ld.CIT(A) of Rs.104,26,49,028/- levied by the Assessing Officer u/s 271(1)(c) of the IT Act for assessment year 2008-09 and Rs.71,47,00,170/- for assessment year 2010-11 is the only issue raised by the Revenue in the grounds of appeal.

4. None appeared on behalf of the assessee. However, the ld. DR filed a copy of the order of the Tribunal in assessee’s own case in ITAs No.2476 & 2477/Del/2014, order dated 10.11.2017 for assessment years 2008-09 and 2010-11 and submitted that various additions made by the Assessing Officer which were sustained by the CIT(A) were deleted by the Tribunal and, therefore, the Bench may take a view as it deems proper.

5. We have considered the arguments advanced by the ld. DR and perused the material available on record. We find penalties for both assessment years in the instant case were levied by the Assessing Officer on account of addition made u/s 41(1) of the IT Act. However, we find the Tribunal in assessee’s own case vide ITAs No.2476 & 2477/Del/2014, order dated 10.11.2017 has deleted the additions made by the Assessing Officer and sustained by the CIT(A) and the appeals filed by the assessee for both the assessment years have been allowed. Since the additions which are the basis for levying the penalty have been deleted, therefore, the penalty does not survive. Therefore, we do not find any infirmity in the order of the CIT(A) in deleting the penalty so levied by the Assessing Officer. The grounds raised by the Revenue are accordingly dismissed.

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