KULPREET KOCHAR,NEW DELHI vs. DCIT, CENTRAL CIRCLE-29, NEW DELHI
What did the Tribunal hold?
The Tribunal held that since the quantum addition, which formed the basis for the penalty, was set aside, the penalty itself should also be set aside. The matter was remanded to the CIT(A) for a fresh decision.
What were the facts?
The assessee appealed against a penalty levied under Section 271AAA. The penalty was based on a quantum addition that had been set aside by the ITAT to the CIT(A) for fresh adjudication.
What were the issues?
Whether a penalty under Section 271AAA can be sustained when the underlying quantum addition has been set aside. The link between the quantum addition and the penalty.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘D’, NEW DELHI
ORDER
Per N. K. Saini, AM:
This is an appeal by the assessee against the order dated 22.02.2018 of ld. CIT(A)-30, New Delhi.
The only grievance of the assessee in this appeal relates to the confirmation of penalty of Rs.8,01,116/- levied by the AO u/s 271AAA of the Income Tax Act, 1961 (hereinafter referred to as the Act).
During the course of hearing, the ld. Counsel for the assessee at the very outset stated that the quantum addition on the basis of which the impugned penalty was levied had been set aside to the ld. CIT(A) by the ITAT Delhi Bench ‘C’, New Delhi in for the assessment year 2012-13 vide order dated 19.06.2018 (copy of the said order was furnished which is placed
Kulpreet Kochar on record). It was stated that since the quantum addition has been set aside to the ld. CIT(A), the penalty u/s 271AAA of the Act may also be set aside because it is directly linked with the said addition.
The ld. Sr. DR could not controvert the aforesaid contention of the ld. Counsel for the assessee.
After considering the submissions of both the parties and the material available on record, we deem it appropriate to set aside this issue back to the file of the ld. CIT(A) to be decided after considering the outcome of the aforesaid referred to appeal of the assessee on the quantum addition and by providing a due and reasonable opportunity of being heard to the assessee.
In the result, the appeal of the assessee is allowed for statistical purposes. (Order Pronounced in the Open Court on 17/09/2018)
More judgments on Section 271AAA
- Rosy Blue (India) Private Limited, Mumbai vs Dy. Commissioner of Income-Tax, Central…ITA 3351/MUM/2026[2012-13]Status: Disposed17 Sept 2026AY 2012-13
- B Nanji Enterprises Ltd., Ahmedabad vs The ACIT, Circle-1(1)(1), AhmedabadITA 2401/AHD/2025[2018-19]Status: Disposed5 Aug 2026AY 2018-19
- B Nanji Enterprises Ltd., Ahmedabad vs The ACIT, Circle-1(1)(1), AhmedabadITA 2400/AHD/2025[2017-18]Status: Disposed5 Aug 2026AY 2017-18
- B Nanji Enterprises Ltd., Ahmedabad vs The ACIT, Circle-1(1)(1), AhmedabadITA 2399/AHD/2025[2016-17]Status: Disposed5 Aug 2026AY 2016-17
- B Nanji Enterprises Ltd., Ahmedabad vs The ACIT, Circle-1(1)(1), AhmedabadITA 2398/AHD/2025[2016-17]Status: Disposed5 Aug 2026AY 2016-17
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