DCIT, NEW DELHI vs. M/S. SVP BUILDERS (INDIA) LTD., GHAZIABAD

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ITA 5324/DEL/2014Status: DisposedITAT Delhi30 November 2017AY 2003-043 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 penalties were imposed had been deleted in the quantum appeals, the basis for the penalties collapsed. Therefore, the deletion of penalties by the CIT(A) was upheld.

What were the facts?

The Revenue appealed against the deletion of penalties imposed under Section 271(1)(c) for multiple assessment years. These penalties were based on additions made by the Assessing Officer.

What were the issues?

Whether penalties under Section 271(1)(c) can be sustained when the underlying additions have been deleted. The validity of penalty imposition in light of deletion of additions.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Before: Shri H.S. Sidhu & Shri L.P. Sahu

Hearing: 30.11.2017Pronounced: 30.11.2017

ORDER Per L.P. Sahu, A.M.: All these six appeals are directed by the Revenue against separate orders of the ld. CIT(A)-X, Delhi, all dated 18.07.2014, challenging the deletion of penalties imposed by Assessing Officer u/s. 271(1)(c) of the IT Act, 1962, amounting to Rs.53,10,375/-, Rs.71,75,000/-, Rs.2,12,58,790/-, Rs.4,04,59,320/-, Rs.10,00,00,000/- and Rs.3,50,00,000/- respectively for the assessment years 2003-04, 2004-05, 2005-06, 2006-07, 2007-08 and 2008-09 respectively.

ITA No. 5324 to 5329/Del./2014 2

2.

The impugned orders have been challenged by the Revenue on the following solitary ground, which is common in all these appeals barring the amounts of penalties imposed. The ground raised in appeal for A.Y. 2003-04 reads as under :

“1. The Ld. CIT(A) has erred on facts and in law in cancelling the penalty of Rs.53,10,375/- imposed by the Assessing Officer u/s. 271(1)(c) of the I.T. Act, 1961.”

3.

We have heard both the parties and have gone through the entire material available on record. At the inception of hearing, the ld. AR of the assessee inviting our attention to a consolidated order dated 29th April, 2014 (copy placed on record) passed by ITAT Delhi Benches, New Delhi in quantum appeals of the assessee for the captioned assessment years, submitted that the additions, on the basis of which the impugned penalties have been imposed, stand deleted. He also invited our attention to the decision of Hon’ble jurisdictional High Court dated 15.12.2015(copy placed on record), whereby the appeals filed by the Revenue against the aforesaid order of the Tribunal stood dismissed. The learned Departmental representative fairly conceded that the additions giving rise to the present penalties stood deleted by the Tribunal order (supra) which stood confirmed by the Hon’ble High Court. In presence of all these facts, we are of the opinion, that once the additions, on ITA No. 5324 to 5329/Del./2014 3 the basis of which the impugned penalties have been imposed in the instant cases, have been deleted in quantum appeals, the very basis of imposition of penalties stood collapsed. We, therefore, are not inclined to interfere with the orders of the ld. CIT(A) who has deleted the impugned penalties after considering the order of the Tribunal, deleting the corresponding additions, as noted above. In view of this matter, the appeals of the Revenue are found bereft of merits and are, accordingly, liable to fail.

4.

In the result, all these six appeals of the Revenue are dismissed.

Order pronounced in the open court on 30.11.2017.

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