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Facts
The assessee filed appeals and stay applications against penalty orders issued following an order from CIT(A)-1 dated 27.09.2018. It was brought to the Tribunal's notice that the underlying quantum additions, which led to these penalty orders, had already been deleted by an earlier Tribunal order dated 08.08.2023.
Held
The Tribunal ruled that with the deletion of the quantum additions, the related penalty orders were liable to be quashed. Accordingly, the assessee's appeals were allowed, and the stay applications were dismissed as having become infructuous.
Key Issues
Whether penalty orders are sustainable when the original quantum additions on which they were based have been deleted by a prior Tribunal order.
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.