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

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/-.

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.

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.

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.

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