M/S. CHITRAKOOT MERCHANDISE PVT. LTD.,NEW DELHI vs. ITO, NEW DELHI

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ITA 6216/DEL/2016Status: DisposedITAT Delhi09 September 2019AY 2003-042 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 additions, which formed the basis for the penalty, were deleted by the Tribunal and upheld by the High Court, the penalty could not be sustained.

What were the facts?

The assessee challenged penalty orders for three assessment years. The penalties were levied based on quantum additions made by the Assessing Officer.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the underlying additions are deleted.

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 ‘B’ NEW DLEHI

Before: SHRI G.S.PANNU & SHRI K. NARSIMHA CHARY

Hearing: 9/9/2019

PER BENCH

1.

These three appeals are filed by the assessee challenging the impugned orders passed by the learned Commissioner of Income Tax (Appeals) for assessment years 2003-04, 2004-05 and 2009-10 sustaining the penalty levied by the learned Assessing Officer.

2.

At the outset, Ld. AR brought it to our notice that the quantum additions made for all these three years basing on which the penalty was levied and sustained, are deleted by the Tribunal in Appeals and therefore, the penalty has no legs to stand and has to be crash.

3.

Ld. AR produced the orders dated 31/5/2017 and 5/1/2018 in ITA numbers 6801 and 6802/Del/ 2013 and 1340/Del/2014 passed by the Tribunal.

4.

Ld. DR could not controvert the factual situation.

5.

We have gone through the orders produced before us and found that for all these the assessment years not only the Tribunal deleted the additions, but the findings of the Tribunal were upheld by the Honhle jurisdictional High Court in ITA 1050 and 1052/2017 and 8004/2018 by orders dated 27/11/2017 and 31/7/2018 respectively. Since the very basis for levy of the penalty for all these 3 years is deleted, the penalty cannot be sustained and the same has to be deleted. We accordingly direct the learned Assessing Officer to delete the penalty for these three years.

6.

In the result, appeals of the assessee are allowed.

Pronounced in open court on this the (^September,

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