SHREE RADHEY TECHNOLOGIES PVT. LTD.,NEW DELHI vs. ACIT, NEW DELHI

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ITA 1761/DEL/2017Status: DisposedITAT Delhi06 August 2019AY 2005-063 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?

Since the addition on which the penalty was levied has been deleted by the Tribunal in a prior order, there is no basis for levying the penalty. The Tribunal set aside the orders of the lower authorities and cancelled the penalty.

What were the facts?

The Assessing Officer made an addition of Rs. 2 lakhs on account of unaccounted sale consideration and levied penalty under section 271(1)(c). The CIT(A) dismissed the assessee's appeal. The ITAT had previously set aside the addition for the same assessment year in a related appeal.

What were the issues?

The primary issue was the validity of the penalty imposed under Section 271(1)(c) when the underlying addition was subsequently deleted by the Tribunal.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 153C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “G” : DELHI

Before: SHRI BHAVNESH SAINI & SHRI ANADEENATH MISSHRA

Hearing: 01.08.2019Pronounced: 06.08.2019

For Assessee : Shri S.K. Chaturvedi, C.A. For Revenue : Shri S.S. Rana, CIT-D.R. Date of Hearing : 01.08.2019 Date of Pronouncement : 06.08.2019 ORDER PER BHAVNESH SAINI, J.M.

This appeal by Assessee has been directed against the Order of the Ld. CIT(A)-8, New Delhi, Dated 07.12.2016, for the A.Y. 2005-2006, challenging the levy of penalty under section 271(1)(c) of the I.T. Act, 1961.

2.

Briefly the facts of the case are that the A.O. passed the assessment order under section 153C of the I.T.

2 ITA.No.1761/Del./2017 Shree Radhey Technologies Private Limited, New Delhi. Act Dated 31.03.2009 making addition of Rs.2 lakhs on account of sale consideration which the assessee has not accounted for. The A.O. at this stage made addition and levied the penalty under section 271(1)(c) of the I.T. Act. The Ld. CIT(A) dismissed the appeal of assessee.

3.

Learned Counsel for the Assessee at the outset submitted that ITAT, Delhi G-Bench in the case of the same assessee for the assessment year under appeal in ITA.No.3227/Del./2013 vide Order Dated 06.04.2018 has set aside the Orders of the authorities below and allowed the appeal of assessee. The addition, therefore, stands deleted. Copy of the Order is placed on record. The Ld. D.R. did not dispute the same.

4.

In view of the above facts it is clear that the addition on which penalty have been imposed under section 271(1)(c) of the I.T. Act have been deleted by the Tribunal, therefore, nothing left for the Revenue so as to levy the penalty against the assessee. We, accordingly, set aside the Orders of the authorities below and cancel the penalty.

3 ITA.No.1761/Del./2017 Shree Radhey Technologies Private Limited, New Delhi. 5. In the result, appeal of Assessee allowed.

Order pronounced in the open Court.

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