ITO, NEW DELHI vs. DR. JYOTI KHERA, NEW DELHI

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ITA 1894/DEL/2014Status: DisposedITAT Delhi18 April 2017AY 2006-074 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal followed the High Court's direction to restore the penalty matter to the CIT(A) for a fresh decision. The CIT(A) is to decide the case in accordance with the law, considering the High Court's directions.

What were the facts?

The Revenue appealed against the deletion of penalty under Section 271(1)(c) for AY 2006-07. The quantum proceedings initially favored the assessee but were later decided against them by the High Court, with SLP dismissed.

What were the issues?

Whether the penalty under Section 271(1)(c) is leviable when the quantum addition was set aside by the High Court, and if so, how it should be decided.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES : D : NEW DELHI

Before: SHRI R.S. SYAL & MS SUCHITRA KAMBLE

For Appellant: Ms Lalitha Krishnamurthy, CA, Shri U.C. Dubey, Sr. DR
Hearing: 17.04.2017Pronounced: 18.04.2017

PER R.S. SYAL, VP: These two appeals by the Revenue are directed against the deletion of penalty u/s 271(1)(c) of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2006-07 in respect of the two different, but, related assessees.

2.

Shorn of unnecessary details, it is seen that the quantum proceedings in the case of Jyothi Khera went in favour of the assessee by the Tribunal along with another related assessees, including, Aman Khera. The Revenue preferred appeal before the Hon'ble Delhi High Court. The Hon'ble jurisdictional High Court has decided the quantum proceedings against the assessee and even the SLP has been dismissed. As regards the penalty, the Hon'ble High Court, vide para 52 of its judgment, has restored the matter to the file of ld. CIT(A) for a fresh decision in accordance with the law. Since the facts and circumstances of penalty in Jyoti Khera and Krishna Khera are similar and identical to those already considered and decided by the Hon’ble High Court, respectfully following the precedent, we set aside the impugned orders and remit the matter to the file of CIT(A) for a fresh decision as per law, after allowing a reasonable opportunity of being heard to the assessee. It is made clear that the directions given by the Hon'ble High Court should be duly taken into consideration in this regard.

3.

In the result, both the appeals are allowed for statistical purposes.

Order Pronounced in the open Court on 18.04.2017.

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