IMPERIA STRUCTURES LTD,NEW DELHI vs. ACIT CENTRAL CIRCLE-15, NEW DELHI

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ITA 2617/DEL/2019Status: DisposedITAT Delhi13 August 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 entire addition on which the penalty was imposed has been deleted by the ITAT in the quantum appeal, the penalty cannot survive. Therefore, the penalty is deleted.

What were the facts?

The assessee's appeal challenges the confirmation of a penalty under Section 271(1)(c) by the CIT(A). The penalty was levied on an addition of Rs. 27,00,000 made in the assessment order.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the underlying addition has been deleted by the Tribunal.

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 “I.2”, NEW DELHI

Before: SHRI H.S. SIDHU & SHRI PRASHANT MAHARISHI

ORDER

PER H.S. SIDHU: JM

1. This appeal by the Assessee is directed against the impugned order dated 30.7.2018 passed by the Ld. CIT(A)-XXVI, New Delhi on the following grounds:-

1.

The order passed by the Ld. CIT (A) is bad in law, wrong on facts and against the principles of natural justice.

2.

That on the facts and in the circumstances of the case and in law the Ld. CIT(A) has erred in confirming imposition of penalty uls 271(1)(c) of Income Tax Act, 1961 of Rs. 8,34,300/- on addition of Rs. 27,00,000/- made in the assessment order, without considering the facts that the appellant company has not concealed the income or furnished inaccurate particulars of Income.

3.

That the Ld. CIT(A) has erred in confirming imposition of penalty of Rs. 834300/- uls 271(1)(c ) of the Income Tax Act, 1961 whereas the entire additions of Rs. 27,00,000/- has already been deleted by the Hon'ble ITAT "G" Bench, New Delhi vide order dt. 28/12/2018 in in the quantum appeal.

4. That the Ld. CIT(A) while confirming the penalty of Rs. 8,34,300/- uls 271(1)(c) of Income Tax Act, 1961 imposed by the Assessing Officer, has grossly ignored the fact that an addition of Rs. 27 Lacs was made by the Assessing Officer towards alleged booking received on the basis of findings in the assessment order of the appellant company for AY 2009-10 and the additions made in the order for AY 2009-10 have already been deleted by the Hon'ble ITAT in appeal No. 2463/Del/2013 vide order dated 13.06.2016 and the Department's appeal against the ITAT order has also been dismissed by the Hon'ble Delhi High Court vide order dated 06.01.2017 in ITA No. 804/2016. The appellant craves leave to add, alter, amend, delete, forego or modify any of the grounds of appeal

before or at the time of hearing.

2. Facts narrated by the revenue authorities are not disputed by both the parties, hence, the same are not repeated here for the sake of convenience.

3. At the time of hearing, Ld. Counsel of the Assessee, has stated that ITAT vide its order dated 28.12.2018 in quantum Appeal No. 3550/Del/2017 (AY 2008-09) has deleted the entire addition on which the penalty in dispute has been imposed.

4.

On the contrary, Ld. DR has not raised any serious objection on the request of the Ld. Counsel for the assessee.

5.

We have carefully considered the submissions and perused the records. We find that in assessee’s own case the ITAT vide its order dated 28.12.2018 in quantum appeal No. 3550/Del/2017 (AY 2008-09) has deleted the entire additions on which the penalty in dispute has been imposed, hence, the penalty in dispute will not survive. Accordingly, we delete the penalty in dispute in this appeal.

6.

In the result, the Appeal filed by the Assessee stands allowed.

Order pronounced in the Open Court on 13/08/2019.

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