M/S. ASHIMA SECURITIES PVT. LTD.,NEW DELHI vs. ITO, NEW DELHI

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ITA 1282/DEL/2017Status: DisposedITAT Delhi03 July 2019AY 2002-033 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 re-assessment orders were set aside and all additions were deleted, there was no basis left for levying the penalty. Consequently, the penalty orders were cancelled.

What were the facts?

The assessee's assessments were reopened under Section 148, leading to penalty under Section 271(1)(c). The assessee had appealed the quantum orders, and the Tribunal had previously quashed the re-assessment proceedings.

What were the issues?

The primary issue was the validity of the penalty levied under Section 271(1)(c) when the underlying re-assessment proceedings were quashed by the Tribunal.

Which sections of the Income-tax Act were involved?

Section 148,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

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

Before: SHRI BHAVNESH SAINI & SHRI PRASHANT MAHARISHI

Hearing: 02.07.2019Pronounced: 03.07.2019
2.

Learned Counsel for the Assessee at the outset submitted that in both the assessment years under appeals, assessments were reopened under section 148 of the I.T. Act which resulted into levy of the penalty. He has submitted that assessee preferred appeals before the ITAT, Delhi A- Bench against the quantum Orders in ITA.Nos.3400 & 3401/Del./2013 for assessment years under appeals in which the Tribunal has quashed the re-assessment proceedings vide Order dated 29.09.2017, copy of the order is placed on record. He has, therefore, submitted that penalty is not leviable in such circumstances.

3.

The Ld. D.R. did not dispute this fact.

4.

Considering the above fact and that since re- assessment orders are set aside and entire additions have been deleted by the Tribunal as noted above, no basis is left for levy of the penalty against the assessee. We, accordingly,

3 ITA.No.1282 & 1281/Del./2017 Ashima Securities Pvt. Ltd., New Delhi. set aside the Orders of the authorities below and cancel the penalty.

5.

In the result, both the appeals of the assessee are allowed.

Order pronounced in the open Court.

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