M/S. VIPUL MOTORS PVT. LTD.,FARIDABAD vs. DCIT, NEW DELHI

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ITA 5078/DEL/2014Status: DisposedITAT Delhi05 July 2018AY 2004-054 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 quantum additions, which formed the basis for the penalty, had been deleted by a co-ordinate bench in favor of the assessee, the penalty itself must also be deleted. The foundation for the penalty was removed.

What were the facts?

The assessee appealed against the levy of penalty under Section 271(1)(c) for Assessment Years 2003-04 and 2004-05. The penalty was levied based on certain additions made by the Assessing Officer.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the underlying additions forming the basis for the penalty have been deleted.

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, DELHI ‘D’ BENCH,

Before: SHRI N.K. BILLAIYA, & SMT BEENA A. PILLAI&

For Appellant: Shri Rajesh Arora, CA
Hearing: 03.07.2018Pronounced: 05.07.2018

PER N.K. BILLAIYA, ACCOUNTANT MEMBER,

1.

These two separate appeals by the assessee are preferred against two separate orders of the CIT(A) - 19, New Delhi dated 07.07.2014 pertaining to A.Ys 2003-04 & 2004-05.

2.

In both these appeals, the assessee aggrieved by the levy of penalty u/s 271(1)(c) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' amounting to Rs. 5,51,250/- in A.Y 2003-04 and Rs. 37,287/- in A.Y 2004-05.

3.

At the very outset, the ld. AR stated that the quantum additions which were challenged before the Tribunal have been decided in favour of the assessee and against the Revenue. The ld. AR provided copy of the order of the Tribunal dated 23.05.2018.

4.

The ld. DR could not bring any distinguishing decision in favour of the Revenue.

5.

We have considered the orders of the authorities below and have duly taken into consideration the order of the co ordinate bench in & 5218/DEL/2013. We find force in the contention of the ld. AR. The additions which form basis for levy of penalty u/s 27191)(c) of the Act have been deleted by the Tribunal in the aforementioned order. Since the foundation has been removed, the super structure must fall. The AO is directed to delete the penalty levied in the respective A.Ys.

6.

In the result, both the appeals of the assessee in & 5078/DEL/2013 are allowed.

The order is pronounced in the open court on 05.07.2018.

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