ACIT, NEW DELHI vs. M/S LASER SEIGHT (INDIA) PVT. LTD., NEW DELHI

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ITA 4463/DEL/2015Status: DisposedITAT Delhi19 June 2018AY 2002-032 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 once the addition in the quantum proceedings is deleted, the penalty levied on the same addition cannot sustain. Therefore, the order of the CIT(A) deleting the penalty was confirmed.

What were the facts?

The revenue appealed against the deletion of penalty under Section 271(1)(c) by the CIT(A). The penalty was levied on an addition of Rs. 40 lakhs on account of share application money.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the addition on which it was based has been deleted in quantum proceedings.

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 BENCH “D”: NEW DELHI

Before: SHRI G.D. AGRAWAL, HON’BLE & SHRI AMIT SHUKLA

Hearing: 19/06/2018Pronounced: 19/06/2018

order dated 23.4.2015, passed by Ld. CIT (Appeals)-V, New Delhi in relation to the penalty proceedings u/s 271(1)(c). In the grounds of appeal revenue has raised following grounds:-

“1.Whether on the facts and circumstances of the case & in law, the Ld.

CIT(A) has erred in deleting the penalty u/s 271(1)(c) of the I.T. Act,

1961 of Rs. 14,28,000/-. As the 2nd appeal is recommended in the quantum assessment.

2.

That the order of the Ld. CIT(A) is erroneous and is not tenable on facts and in law.”

2. In the aforesaid case penalty has been levied for an addition of Rs. 40 lac on account of share application money. In the quantum proceedings, the said addition has been deleted and it for this reason alone the Ld. CIT (A) has deleted the penalty.

3.

In view of the aforesaid fact that, once in the quantum proceedings addition stands deleted, then levy of penalty on same addition has no legs to stand. Accordingly, the order of the Ld. CIT (A) is confirmed and grounds raised by the revenue are dismissed.

4.

In the result the appeal of the revenue is dismissed.

Order pronounced in the Open Court on 19th June, 2018.

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