BRIJESH KUMAR,MUZAFFARNAGAR vs. INCOME TAX OFFICER, WARD-3(1)(2), MUZAFFARNAGAR

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ITA 3540/DEL/2024Status: DisposedITAT Delhi09 December 2024AY 2014-15Bench: SHRI MAHAVIR SINGH (Vice President), SHRI S. RIFAUR RAHMAN (Accountant Member)3 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 noted that the quantum addition underlying the penalty had indeed been deleted by a Coordinate Bench of the ITAT. Following the principle that a penalty cannot survive if the basis for its imposition is removed, the Tribunal cancelled the orders of the lower authorities and deleted the penalty.

What were the facts?

The assessee appealed a penalty of Rs. 10,00,000/- imposed under Section 271(1)(c) for AY 2014-15, which was confirmed by the CIT(A)/NFAC. The assessee contended that the quantum addition, on which the penalty was based, had already been deleted by the ITAT in a separate order for the same assessment year in their own case.

What were the issues?

Whether a penalty levied under Section 271(1)(c) of the Income Tax Act can be sustained when the underlying quantum addition has been deleted by the ITAT.

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 ‘A’ NEW DELHI

Before: SHRI MAHAVIR SINGH & SHRI S. RIFAUR RAHMAN

For Appellant: CA Ankit Gupta
For Respondent: Shri Yogesh Nayyar, Sr. DR
Hearing: 09.12.2024Pronounced: 09.12.2024

PER MAHAVIR SINGH, VICE PRESIDENT :

1.

This appeal by the Assessee is directed against the order dated 06.06.2024 of the Ld. CIT(A)/NFAC, New Delhi relating to assessment year 2014-15 solitary on the following ground:-

That the NFAC has erred in law and on facts in confirming the action of AO of imposing the penalty of Rs. 10,00,000/- u/s. 271(1)©, which is highly arbitrary and unjustified.

2. At the time of hearing, Ld. A.R. for the Assessee, stated that the quantum addition on which the penalty has been imposed, has already been deleted by the ITAT, New Delhi Coordinate Bench in (AY 2014-15) vide Order dated 18.11.2024. In this behalf he filed the copy of the Tribunal’s Order dated 18.11.2024 in assessee’s own case and requested that penalty in dispute may be deleted accordingly.

3.

Per contra, Ld. Sr. DR. did not controvert the aforesaid contention of the Ld. AR for the assessee.

4.

We have heard the rival contentions and perused the records, especially the aforesaid Coordinate Bench decision dated 18.11.2024. We find considerable cogency in the contention of the Ld. AR for the assessee that in assessee’s own case in (AY 2014-15) vide order dated 18.11.2024, the Coordinate Bench of Delhi Tribunal had already deleted the quantum addition on which the penalty has been imposed. Therefore, in view of the aforesaid factual matrix, in our considered view, the penalty in dispute will not survive. Hence, we cancel the orders of the authorities below and delete the penalty in dispute by allowing the Appeal filed by the Assessee.

5.

In the result, the appeal filed by the Assessee stands allowed.

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