JINDAL PIPES LTD.,NEW DELHI vs. DCIT, NEW DELHI

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ITA 3304/DEL/2016Status: DisposedITAT Delhi17 September 2018AY 2004-052 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 noted that the quantum proceedings, which formed the basis for the penalty, had been set aside by the Tribunal itself. Consequently, the penalty was deleted.

What were the facts?

The assessee is aggrieved by a penalty levied under Section 271(1)(c) for AY 2004-05. The penalty was imposed following assessment proceedings.

What were the issues?

Whether a penalty under Section 271(1)(c) can sustain when the underlying quantum assessment proceedings are quashed. The validity of penalty proceedings in light of the outcome of assessment proceedings.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 147,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “Friday” NEW DELHI

Before: SHRI G.D. AGRAWAL & SHRI AMIT SHUKLA

For Appellant: Shri Ashish Chadha, CA
For Respondent: Shri Amit Jain, Sr.D.R

PER AMIT SHUKLA, J.M.: The aforesaid appeal has been filed by the assessee against the impugned order dated 18.04.2016 passed by Ld. CIT(Appeals)-V, Delhi in relation to penalty proceedings initiated u/s.271(1)(c) for the Assessment Year 2004-05. The assessee is mainly aggrieved by levy of penalty at Rs.7,17,500/-.

2.

At the outset, ld. counsel for the assessee submitted that in the quantum proceedings, the Tribunal vide order dated 03.04.2017 in has set aside the order of the ld. CIT (A) and quash the proceedings initiated u/s.147/148 of the Act, therefore, the impugned penalty appeal should also be deleted.

3.

Learned Department Representative has no objection and he too admitted that in the quantum proceedings, the matter has been set aside and the appeal has been allowed.

4.

After considering the aforesaid submissions, we find that in the quantum proceedings the Tribunal has set aside the order of the Ld. CIT (A) and allowed the quantum appeal. Whence in the quantum appeal, the order of the ld. CIT (A) has set aside and quantum appeal of the assessee has allowed, then the impugned penalty is deleted and consequently, appeal of the assessee is allowed.

5.

In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 17th September, 2018.

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