B P RATURI,NEW DELHI vs. ACIT, CIRCLE- I, NEW DELHI

PDF · subscribers
ITA 196/DEL/2018Status: DisposedITAT Delhi19 June 2018AY 2013-142 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 on which the penalty was imposed had already been deleted by a previous ITAT order for the same assessee and assessment year, there was no basis for levying the penalty.

What were the facts?

The Assessing Officer made an addition of Rs. 4,72,309/- on account of disallowance of interest under Section 14A read with Rule 8D. A penalty under Section 271(1)(c) was levied on this addition, which was confirmed by the CIT(A).

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the primary addition forming the basis of the penalty has been deleted.

Which sections of the Income-tax Act were involved?

Section 14A,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “SMC”: DELHI

Before: SHRI BHAVNESH SAINI

Hearing: 13.06.2018Pronounced: 19.06.2018

ORDER This appeal by assessee has been directed against the order of Ld. CIT(A)-I, Noida dated 25.09.2017 for the A.Y. 2013-14 challenging the levy of penalty u/s 271(1)(c) of the Income Tax Act, 1961 (the Act).

2.

Briefly the facts of the case are that the A.O. made addition of Rs.4,72,309/- on account of disallowance of interest u/s 14A read with Rule 8D. The A.O. levied penalty on this addition u/s 271(1)(c) of the Act. The Ld.CIT(A) dismissed the appeal of assessee confirming the penalty order.

3.

Ld.Counsel for the assessee at the outset submitted that ITAT SMC Bench in the case of assessee for A.Y. under appeal in ITA 5837/Del/17 vide order dated 7th Feb., 2018 deleted the addition and allowed the appeal of assessee, therefore, no basis left for levy of ITA 196/Del/2018 A.Y. 2013-14 M/s BP Raturi, Noida vs. ACIT, Circle 1, Noida penalty. Copy of the order placed on record and provided to Ld.D.R. who did not dispute the same.

4.

In view of the above, I am of the view that no penalty is leviable as the addition on which penalty imposed has already been deleted by the Tribunal, therefore, there is no basis left for Revenue to levy the penalty 271(1)(c) of the Act.

5.

Accordingly, I set aside the orders of authorities below and cancel the penalty.

6.

In the result, the appeal of assessee is allowed. Order pronounced in the open Court.

More judgments on Section 14A

All 15,875 judgments and leading authorities on Section 14A →

Recent GST High Court judgments

Search GST case law →