Loading judgment…
Facts
The assessee filed appeals and stay applications against the CIT(A)'s order dated 27.09.2018, which concerned penalty orders. Both parties informed the Tribunal that the underlying quantum additions made in the Assessment order had already been deleted by a prior Tribunal order dated 08.08.2023.
Held
The Tribunal held that since the quantum additions, which formed the basis for the penalty orders, had already been deleted, the penalty orders were liable to be quashed. Consequently, the appeals filed by the assessee were allowed, and the associated stay applications were dismissed as infructuous.
Key Issues
Whether penalty orders are sustainable once the quantum additions on which they are based have been deleted by a higher authority.
Sections Cited
AI-generated summary — verify with the full judgment below
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.