TECHNO BLAST PVT. LTD., C/O BHARAT EXPLOSIVES LTD.,NEW DELHI vs. ACIT, NOIDA

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ITA 2714/DEL/2016Status: DisposedITAT Delhi22 April 2019AY 2005-062 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 agreed with the assessee's counsel that if the addition itself has been deleted, the penalty based on that addition cannot survive. Consequently, the penalty was cancelled.

What were the facts?

The assessee's appeal was against a penalty levied under Section 271(1)(c) of the Income-tax Act, 1961. The penalty was based on a disallowance of commission amounting to Rs. 15,16,345/-.

What were the issues?

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

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, IN THE INCOME TAX APPELLATE TRIBUNAL

Before: SHRI & AND & MS. SUCHITRA KAMBLE

For Appellant: Dr. R.M. Mehta, CA
For Respondent: Shri S.S. Rana, CIT-DR
Hearing: 22.04.2019Pronounced: 22.04.2019

PER G.D. AGRAWAL, PER G.D. AGRAWAL, VICE PER G.D. AGRAWAL, PER G.D. AGRAWAL, VICE VICE PRESIDENT VICE PRESIDENT PRESIDENT :- PRESIDENT

1.

This appeal by the assessee for the assessment year 2005-06 is directed against the order of learned CIT(A)-I, Noida dated 29th February, 2016 against the levy of penalty of `5,55,000/- under Section 271(1)(c) of the Income-tax Act, 1961.

2.

We have heard the arguments of both the sides and perused the material placed before us. It was pointed out by the learned counsel that the penalty has been levied in respect of the disallowance of commission of `15,16,345/-. The ITAT, in the quantum appeal vide has deleted this addition. He stated that since the addition itself has been deleted, the penalty does not survive. Copy of 2 ITA-2714/Del/2016 the said order has been placed before us. We agree with the learned counsel that once the addition itself has been deleted, the penalty based upon such addition cannot survive. Accordingly, we cancel the penalty levied under Section 271(1)(c) of the Act.

3.

In the result, the appeal of the assessee is allowed. Decision pronounced in the open Court on 22.04.2019.

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