DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(3), BANGALORE vs. M/S ASSOCIATED MINING COMPANY, BANGALORE

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ITA 1793/BANG/2017Status: DisposedITAT Bangalore14 May 2019AY 2007-084 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the assessment orders, on which the penalty orders were based, had been quashed, the penalty orders could not stand independently. Therefore, the CIT(A)'s decision to cancel the penalties was upheld.

What were the facts?

The revenue challenged the cancellation of penalties levied under Section 271(1)(c) by the CIT(A). The assessee argued that the penalty orders should not survive as the original assessment orders for all years had been quashed by the Tribunal.

What were the issues?

Whether penalty under Section 271(1)(c) can survive if the underlying assessment order is quashed.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

2.

At the outset, the Ld Counsel appearing for the assessee submitted that the assessments framed for all the years under consideration have since been quashed by the Tribunal, vide its order dated 18-10-2016 passed in to 1360/B/2014. Accordingly he submitted that the present penalty orders for the years under consideration will not survive, since the concerned assessment orders have been quashed.

3.

The Ld D.R did not object to the factual aspects presented by Ld A.R.

4.

Since the assessment orders, on the basis of which the impugned penalty orders have been passed, have been quashed by the Tribunal, vide its order referred above, the impugned penalty orders shall not have independent legs to stand on its own. Accordingly we find merits in the submissions of the Ld A.R of the assessee. We notice that the Ld CIT(A) has cancelled the penalty on the reasons cited above. Accordingly we do not find any infirmity in the orders passed by Ld CIT(A).

5.

In the result, all the appeals of the revenue are dismissed.

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