A.G. CONVEYING SYSTEMS PVT.LTD,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 1 (2), PUNE

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ITA 1645/PUN/2019Status: DisposedITAT Pune15 June 2022AY 2009-103 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 underlying addition/disallowance on which the penalty was based was deleted, the penalty had no basis. Therefore, the penalty was also deleted.

What were the facts?

The assessee appealed against a penalty levied under Section 271(1)(c) of the Income Tax Act. The penalty was based on a disallowance for bogus purchases. However, the original disallowance itself was later deleted by the National e-Assessment Centre.

What were the issues?

Whether a penalty under Section 271(1)(c) can be sustained when the original addition/disallowance giving rise to the penalty has been 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, “A” BENCH, PUNE

Before: SHRI S.S.GODARA, JM & SHRI DR. DIPAK P. RIPOTE, AM

For Appellant: Shri S.N.Puranik
For Respondent: Shri S. P. Walimbe
Hearing: 07.06.2022Pronounced: 15.06.2022

आदेश / ORDER PER S. S. GODARA, JM :

1.

This assessee’s appeal for A.Y. 2009-10 is directed against the CIT(A) - 1, Pune’s order dated 18/07/2019 passed in case No. PN/CIT(A) -1/DCIT, Circle-1(2), PN/20/2017-18 involving proceeding u/s. 271(1)(c) of the Income Tax Act, 1961 ; in short “the Act”. Heard both the parties. Case file perused.

A.G. Conveying Systems Pvt. Ltd., ,

2.

Coming to the assessee’s sole substantive grounds both the lower authorities have erred in law and on facts in levying section 271(1)(c) penalty of Rs. 7,59,000/- in their respective orders, we note at the outset that the corresponding quantum disallowance/addition of bogus purchases amounting to Rs. 22,33,000/- itself stands deleted in the National e- Assessment Centre Delhi’s consequential assessment order dated 23.04.2021 passed in furtherance to the tribunal’s remand directions dated 19.09.2019 in quantum appeal. The same sufficiently indicates that the impugned penalty has no legs to stand as on date. It stands deleted in very terms. Ordered accordingly. Delay of one day in filing stands condoned in larger interest of justice.

3.

This assessee’s appeal is allowed in above terms. Order pronounced in the Open Court on this 15th day of June, 2022.

Sd/- Sd/- (DR.DIPAK P.RIPOTE) (S.S. GODARA) लेखध सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य/JUDICIAL MEMBER पपणे / Pune; ददनधांक / Dated : 15th June, 2022. Ashwini आदेश की प्रनतनलनप अग्रेनषत / Copy of the Order forwarded to : अपऩलधथी / The Appellant. 1. प्रत्यथी / The Respondent. 2.

3. The CIT(A)-1, Pune.

4.

The Pr.CIT-1, Pune. 5. नवभधगऩय प्रनतनननध, आयकर अपऩलऩय अनधकरण, “ए” बेंच, पपणे / DR, ITAT, “A” Bench, Pune. गधर्ा फ़धइल / Guard File. आदेशधनपसधर / BY ORDER, 6. // True Copy // Senior Private Secretary आयकर अपऩलऩय अनधकरण, पपणे / ITAT, Pune.

A.G. Conveying Systems Pvt. Ltd., ,

S.No. Details Date Initials 1 Draft dictated on 07.06.2022 2 Draft placed before author 15.06.2022 Draft proposed & placed before the Second 3 Member 4 Draft discussed/approved by Second Member 5 Approved Draft comes to the Sr. PS/PS 6 Kept for pronouncement on 7 Date of uploading of Order 8 File sent to Bench Clerk 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order

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