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Facts
The assessee failed to disclose a foreign bank account. This led to reassessment proceedings and a penalty order for concealment of income. The co-ordinate bench had previously quashed the reassessment orders, deeming them null and void.
Held
The Tribunal held that since the reassessment orders on which the penalty was based were quashed and declared null and void, the penalty itself cannot survive. The deletion of penalties by the CIT(A) was thus upheld.
Key Issues
Whether the penalty levied for concealment of income can survive when the original reassessment orders are quashed as null and void?
Sections Cited
271(1)(c), 148, 143(3), 147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “I” BENCH, MUMBAI
Before: AND SHRI RAJ KUMAR CHAUHAN, JM
is filed for A.Y. 2006-07 and A.Y. 2007-08, against the appellate order passed by the learned Commissioner of Income-tax (Appeals)-55, Mumbai [the learned CIT (A)] dated 24th July, 2023, wherein the appeal filed by the assessee against the penalty order passed under Section 271(1)(c) of the Act, dated 30th September, 2015, by the
The facts for both the years are identical. Therefore, the learned Assessing Officer is aggrieved and is in appeal before us. The grounds are also identical because the quantum of penalty wherein for A.Y. 2007-08, the penalty is ₹2,46,84,679/- and for A.Y. 2006-07, the penalty amount is ₹2,08,72,373/-, quantum appeal of the assessee were allowed by common order of the IT 80 dated 9/05/2023.
Brief facts of the case shows that in case of the assessee information was received by Government of India, from French Government under DTAA about having foreign bank account in HSBC Private Bank, Geneva, which are not disclosed to the Indian Tax Authorities. On the basis of the above information, the case of the assessee was reopened by issue of notice under Section 148 of the Act on 12th March, 2014, which culminated into an assessment order on 31st March, 2015, at a total income of ₹2,27,36,790/- being added in the hands of the assessee. Based on the assessment proceedings, the penalty notices were issued on 31st March, 2015, for concealment of income. Subsequent to that penalty orders were passed on
The learned Departmental Representative supported the order of the learned Assessing Officer levying the penalty but also agreed that ITAT has passed the order in for A.Y. 2006-07, and ITA No.6096/Mum/2016, for A.Y. 2007-08, wherein the reassessment proceedings are quashed and quantum additions are deleted. 06. The learned Authorized Representative submitted the copy of the order of ITAT dated 9th May, 2023, for both the above assessment years and therefore, stated that when the quantum addition has been deleted, the penalty does not survive.
We have carefully considered the rival contentions and perused the orders of the lower authorities. We find that
In the result, all the grounds of both these appeals are dismissed.
Order pronounced in the open court on 13.05.2024.