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Facts
The assessee filed appeals and stay applications against penalty orders issued by the CIT(A)-1, Noida, dated 27.09.2018. It was brought to the Tribunal's attention that the quantum additions, which formed the basis of these penalty orders, had already been deleted by a prior order of the Tribunal dated 08.08.2023.
Held
The Tribunal held that since the underlying quantum additions were deleted, the corresponding penalty orders were liable to be quashed. Consequently, the appeals filed by the assessee were allowed, and the associated stay applications were dismissed as having become infructuous.
Key Issues
Whether penalty orders are sustainable when the quantum additions forming their basis have already been deleted by the Tribunal.
Sections Cited
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Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI
Before: Dr. B. R. R. Kumar, Sh. Sudhir Kumar
ORDER PER BENCH: The present appeals and stay applications have been filed by the assessee against the order of CIT(A)-1, Noida dated 27.09.2018.
At the outset, both the parties fairly brought to our notice that the quantum additions made in the Assessment order stands deleted by the order of the Tribunal dated 08.08.2023. Hence, the penalty orders are liable to be quashed. Since, the penalty orders have been quashed, the stay applications become in-fructuous and hence dismissed.
In the result, the appeals of the assessee are allowed and stay applications are dismissed as in-fructuous.
Order Pronounced in the Open Court on 17/05/2024.