RAM NIWAS ASHA RANI LOKHOTIA TRUST,NEW DELHI vs. ITO, NEW DELHI
In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that if the addition on which the penalty was levied has been deleted in the quantum proceedings, then the penalty cannot stand. Consequently, the penalty was quashed.
What were the facts?
The assessee is aggrieved by a penalty levied under Section 271(1)(c) for AY 2006-07. The penalty was based on an addition made in the quantum proceedings.
What were the issues?
Whether penalty under Section 271(1)(c) can survive if the underlying addition is deleted in quantum proceedings.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “F” NEW DELHI
Before: SHRI AMIT SHUKLA & SHRI ANADEE NATH MISSHRA
O R D E R PER AMIT SHUKLA, JM
The aforesaid appeal has been filed by the assessee against the impugned order dated 22.03.2017 passed by Ld. Commissioner of Income Tax (Appeals)-XL, Delhi in relation to penalty proceedings initiated u/s.271(1)(c) for the Assessment Year 2006-07. The assessee is mainly aggrieved by levy of penalty at Rs.15,84,860/-.
At the outset, ld. counsel for the assessee submitted that in the quantum proceedings, the Tribunal vide order dated 01.03.2018 in has deleted the addition on which penalty has been levied, therefore, the impugned penalty appeal should also be deleted.
Learned Department Representative has no objection and he too admitted that in the quantum proceedings addition has been deleted.
In view of the aforesaid fact that once addition on which penalty has been levied u/s. 271(1)(c) itself has been deleted then penalty has no leg to stand. Accordingly, the same is quashed.
In the result, the appeal of the assessee is allowed.
Order pronounced in the open Court on 16th December, 2019.
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- Hetal Vinodchandra Sheth, Ahmedabad vs The ITO, Ward-5(3)(1), AhmedabadITA 2370/AHD/2025[2014-15]Status: Disposed16 Oct 2026AY 2014-15
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