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Facts
The assessee filed appeals against the CIT(A)'s order dated 28.04.2017, confirming a penalty of Rs. 17,749/- under Section 271(1)(c) of the Income Tax Act, 1961, for Assessment Years 2013-14 and 2014-15. The penalty was imposed following a "Quantum addition" made in the assessment.
Held
The Tribunal noted that the underlying quantum addition, which formed the basis for the penalty, had already been deleted by a Co-ordinate Bench of the Tribunal in the assessee's own case for A.Y. 2014-15. Consequently, the penalty levied under Section 271(1)(c) was directed to be obliterated.
Key Issues
Whether a penalty under Section 271(1)(c) is sustainable when the foundational quantum addition has been deleted by a higher authority.
Sections Cited
271(1)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Dr. B. R. R. Kumar
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Asstt. Year : 2013-14 : Asstt. Year : 2014-15 Jyoti Gupta (Goel), Vs. ACIT, 60/20, First Floor, Prabhat Road, Central Circle-28, Ramjas road, Karol Bagh, New New Delhi Delhi-110005 (APPELLANT) (RESPONDENT) PAN No. AIAPG0204E Assessee by : Sh. Nirbhay Mehta, CA Revenue by : Sh. Om Parkash, Sr. DR Date of Hearing: 28.03.2024 Date of Pronouncement: 02.04.2024 ORDER The present appeal has been filed by the assessee against the order of ld. CIT(A)-29, New Delhi dated 28.04.2017. 2. Since, the issue involved in both the appeals are similar, they were heard together and being adjudicated by a common order. In , following grounds have been raised by the assessee:
“1. That on the facts and circumstances of the case and in law the penalty order passed by CIT (A)-29 New Delhi, is contrary to facts and bad in law.
That the CIT (A) was not justified on facts and circumstances of the case in confirming the penalty of Rs.17,749/- u/s 271(1)(c) of the Income Tax Act 1961 (hereafter referred as "the Act").
3. That the CIT (A) was not justified on facts and circumstances of the case in confirming the penalty u/s 271(1)(c) of the Act, without specifying whether the show & 275/Del/2024 2 Jyoti Gupta (Goel) cause was for furnishing of inaccurate particulars of income or with regard to concealment of income.”
At the outset, it has been brought to our notice that the “Quantum addition” stands deleted by the order of the Co- ordinate Bench of Tribunal in assessee’s own case in & 4508/Del/2017, for A.Y. 2014-15 vide order dated 25.11.2021, hence, the penalty levied u/s 271(1)(c) is hereby directed to be obliterated.
In the result, the appeals of the assessee are allowed. Order Pronounced in the Open Court on 02/04/2024.