SMT SANTOSH AGGARWAL,NEW DELHI vs. ITO, NEW DELHI

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ITA 2977/DEL/2016Status: DisposedITAT Delhi21 November 2017AY 2005-062 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 levied was restored to the Assessing Officer for fresh adjudication, the penalty did not survive. The penalty was cancelled, with liberty to the Assessing Officer to initiate fresh proceedings.

What were the facts?

The assessee's appeal concerned a penalty levied under Section 271(1)(c) of the Income Tax Act. The penalty was confirmed by the CIT(A). The assessee argued that the quantum appeal for the same assessment year had been restored to the Assessing Officer.

What were the issues?

Whether the penalty under Section 271(1)(c) survives when the underlying addition is set aside or restored to the Assessing Officer for fresh adjudication.

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 “SMC”, NEW DELHI

Before: SHRI R. K. PANDA

For Appellant: Shri Satish Khosla, Adv
For Respondent: Ms. Yamini, Sr.DR

O R D E R PER R. K. PANDA, AM : This appeal filed by the assessee is directed against the order dated 18.03.2016 of CIT(A)- 34, New Delhi relating to assessment year 2005-06. 2. Levy of penalty of Rs.2,75,534/- u/s 271(1)(c) by the Assessing Officer and confirmed by the ld. CIT(A) is the only issue raised by the assessee in the grounds of appeal

3. Ld. counsel for the assessee at the outset filed a copy of the order of the Tribunal in assessee’s own case for assessment year 2005-06 vide order dated 17.05.2016 and submitted that the Tribunal has restored the quantum appeal to the file of the Assessing Officer. Therefore, this penalty matter also should be restored to the file of the Assessing Officer for fresh adjudication.

4.

Ld. DR has no objection for the same.

5.

Since the addition on which penalty was levied has been restored to the file of the Assessing Officer for fresh adjudication, therefore, the penalty so levied by the Assessing Officer and upheld by the ld. CIT(A) does not survive and, therefore, the same is cancelled. However, the Assessing Officer is at liberty to initiate penalty proceedings u/s 271(1)(c) as per law after passing the assessment order. I hold and direct accordingly. The grounds raised by the assessee are accordingly allowed.

6.

In the result, the appeal filed by the assessee is allowed.

Order pronounced in the open Court at the time of hearing itself i.e. on this 21st day of November, 2017.

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