INSTITUTE OF MANAGEMENT EDUCATION,GHAZIABAD vs. DCIT, EXEMPTION, GHAZIABAD

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ITA 640/DEL/2018Status: DisposedITAT Delhi21 June 2018AY 2010-113 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 addition forming the basis of the penalty was deleted by a previous Tribunal order, the penalty could not be sustained. Therefore, the penalty was directed to be deleted.

What were the facts?

The assessee's appeal was against a penalty imposed under Section 271(1)(c) of the Income Tax Act. The penalty was based on an addition made by the Assessing Officer in the assessment order.

What were the issues?

Whether a penalty under Section 271(1)(c) can be sustained when the addition forming its basis has 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 BENCHES: “SMC”: NEW DELHI

Before: SHRI R.S. SYAL

Hearing: 20.06.2018Pronounced: 21.06.2018

M/s Institute of Management Vs. DCIT- Exemption, Education, 178, GT Road, Ghaziabad Sahibabad, Ghaziabad PAN: AAATI1437R (Appellant) (Respondent) Assessee By : Sh. Akhilesh Kumar & Sh. Arun Agarwal, Advocates Department By : Sh. B.R. Mishra, Sr. DR Date of Hearing : 20.06.2018 Date of Pronouncement : 21.06.2018 ORDER PER R.S. SYAL, VP: This appeal by the assessee is directed against the order passed by the learned CIT(A), Ghaziabad on 4.10.2017 in relation to assessment year 2010- 11 confirming penalty of Rs.12,14,880/- imposed by Assessing Officer under Section 271(1)(c) of the Act.

2.

I have heard both the sides and gone through the relevant material on record. It is observed that the only basis for imposition of penalty is an addition of Rs.39,31,650/- made by the Assessing Officer in the assessment order. The learned AR has placed on record a copy of the Tribunal order dated 10.2.2017 in in which such addition has been deleted. No material has been placed on record to demonstrate that such an order has been reversed or modified by the Hon’ble High Court. In view of the fact that the very foundation of the penalty, being, the amount of addition made in the assessment order ceases to exist, there can be no question of imposing or confirming any penalty thereon. I, therefore, direct to delete the penalty.

3.

In the result, the appeal is allowed.

The order pronounced in the open court on 21st June, 2018.

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