SMT. ANITA JUNEJA,NEW DELHI vs. ITO, NEW DELHI

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ITA 4533/DEL/2014Status: DisposedITAT Delhi03 October 2017AY 2004-053 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 if the original assessment order is quashed due to invalid reopening, then any penalty proceedings arising from it are also invalid and cannot stand.

What were the facts?

The assessee's appeal was against a penalty levied under Section 271(1)(c). The penalty was based on a quantum assessment order that was subsequently quashed by the Tribunal.

What were the issues?

Whether a penalty can be sustained when the underlying assessment order, which led to the penalty, has been quashed due to invalid reopening.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “A” BENCH NEW DELHI

Before: SHRI O.P. KANT & SHRI AMIT SHUKLA

For Appellant: Shri Rajesh Arora, CA
For Respondent: Shri R.C. Danday, Sr. DR
Hearing: 13/09/2017Pronounced: 03/10/2017

ORDER

PER AMIT SHUKLA, JUDICIAL MEMBER:

1.

The aforesaid appeal has been filed by the assessee against impugned order dated 30.05.2014, passed by the Ld. CIT (Appeals)- XXIV, New Delhi in relation to the penalty proceedings u/s 271(c). The assessee is mainly aggrieved by the levy of penalty of Rs. 8,93,310/-.

2.

At the outset, the Ld. Counsel submitted that in the quantum proceedings the Tribunal has quashed the reopening of the assessment u/s 147 and consequently no penalty can be levied when the quantum order itself has been quashed.

3.

The Ld. DR also admitted that the assessment order on the basis of which impugned penalty proceedings have been initiated and have been quashed and therefore, penalty proceedings itself has become infructuous.

4.

In view of the aforesaid fact that the impugned penalty proceedings are arising out of the quantum assessment order dated 28.12.2011 passed u/s 147/143(3) and whence the assessment order have been quashed on the ground that the reopening itself was invalid, then penalty proceedings and levy of penalty arising out of such assessment proceedings has no legs to stand. Accordingly, the penalty levied for a sum of Rs. 8,93,310/- is deleted.

5.

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

Order pronounced in the open court on 03.10.2017.

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