ACIT, NEW DELHI vs. M/S. RITES LTD., GURGAON

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ITA 6255/DEL/2016Status: DisposedITAT Delhi26 December 2017AY 2009-102 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 since the additions on which the penalty was based had already been deleted by the ITAT in a prior quantum appeal, the penalty could not survive.

What were the facts?

The Revenue appealed against the deletion of a penalty of Rs. 72,37,100 levied under Section 271(1)(c). This penalty was based on additions made for interest income and disallowance under Section 14A.

What were the issues?

Whether a penalty levied under Section 271(1)(c) can be sustained when the underlying additions have been deleted by the appellate tribunal.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL

Before: SHRI G.D. AGRAWAL, G.D. AGRAWAL & AND BEFORE SHRI & AND SMT. BEENA A. PILLAI SMT. BEENA A. PILLAISMT. BEENA A. PILLAI SMT. BEENA A. PILLAI

For Appellant: Shri Atiq Ahmed, Senior DR
For Respondent: Shri Satyajit Goel, CA
Hearing: 21.12.2017Pronounced: 26.12.2017

PER G.D. AGRAWAL, PER G.D. AGRAWAL, PRESIDENT PER G.D. AGRAWAL, PER G.D. AGRAWAL, PRESIDENT PRESIDENT :- PRESIDENT

1.

This appeal by the Revenue for the assessment year 2009-10 is directed against the order of learned CIT(A)-36, New Delhi dated 2nd September, 2016.

2.

The only ground raised by the Revenue in this appeal is against the deletion of penalty of `72,37,100/- which was levied by the Assessing Officer u/s 271(1)(c) of the Income-tax Act, 1961.

3.

At the time of hearing before us, it was pointed out by the learned counsel that the penalty has been levied in respect of two additions – (i) the addition of `2,01,66,000/- on account of interest income and (ii) disallowance u/s 14A amounting to `11,25,844/-. That in quantum appeal, the ITAT, vide order dated 24th April, 2017 in & 3026/Del/2014, deleted both the additions. A 2 ITA-6255/Del/2016 copy of the said order was placed on record. He, therefore, prayed that the penalty may also be deleted.

4.

Learned Senior DR relied upon the order of the Assessing Officer.

5.

We have carefully considered the submissions of both the sides and perused the material placed before us. Since the additions itself have been deleted by the ITAT, the penalty based upon such additions cannot survive. We, therefore, cancel the penalty levied u/s 271(1)(c) of the Act.

6.

In the result, the appeal of the Revenue is dismissed. Decision pronounced in the open Court on 26.12.2017.

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