M/S. HARSH INTERNATIONAL PVT. LTD.,NEW DELHI vs. DCIT, NEW DELHI

PDF · subscribers
ITA 2737/DEL/2014Status: DisposedITAT Delhi02 January 2017AY 2009-102 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 since the disallowance of loss, which formed the basis for the penalty, was not sustained in the quantum appeal, the penalty cannot be sustained. Therefore, the penalty was deleted.

What were the facts?

The assessee declared a loss of ₹23,82,956. The Assessing Officer disallowed this loss, stating the assessee did not conduct any business, and levied a penalty. However, the ITAT in a related quantum appeal directed the Assessing Officer to allow depreciation and business expenditure.

What were the issues?

Whether a penalty can be sustained when the underlying disallowance of loss, on which it was levied, has been overturned in a related appeal.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL

Before: SHRI G.D. AGRAWALG.D. AGRAWAL & AND BEFORE SHRI G.D. AGRAWALG.D. AGRAWAL & AND SHRI KULDIP SINGH SHRI KULDIP SINGHSHRI KULDIP SINGH SHRI KULDIP SINGH

For Appellant: Shri Mukesh Gupta, Advocate
For Respondent: Shri Amrit Lal, Senior DR
Hearing: 22.12.2016Pronounced: 02.01.2017

PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP :- PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP This appeal by the assessee for the assessment year 2009-10 is directed against the order of learned CIT(A)-XXXII, New Delhi dated 7th February, 2014.

2.

We have heard the arguments of both the sides and have perused the material placed before us. The assessee had filed the return declaring loss of `23,82,956/-. The Assessing Officer disallowed the loss computed by the assessee on the ground that the assessee did not carry on any business. The penalty has been levied in view of the above disallowance of loss. However, in the quantum appeal, vide order dated 14th February, 2014 in the ITAT directed the Assessing Officer to allow depreciation as well as business expenditure. Since the disallowance of loss by the Assessing Officer on 2 ITA-2737/Del/2014 which the penalty has been levied is not accepted by the ITAT in the quantum appeal, in our opinion, the penalty based upon such disallowance of loss cannot be sustained. The same is deleted.

3.

In the result, the appeal of the assessee is allowed. Decision pronounced in the open Court on 02.01.2017.

Recent GST High Court judgments

Search GST case law →