MS. SUNITA GUPTA,NEW DELHI vs. ACIT, NEW DELHI

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ITA 1257/DEL/2014Status: DisposedITAT Delhi29 July 2016AY 2006-073 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 addition, which formed the basis for the penalty, was deleted, the penalty could not be sustained. Therefore, the penalty was cancelled.

What were the facts?

The assessee's appeal was against a penalty imposed under Section 271(1)(c) of the Income Tax Act. The penalty was based on an addition made by the Assessing Officer. The addition on which the penalty was levied had been deleted by the Tribunal in separate quantum proceedings.

What were the issues?

Whether a penalty under Section 271(1)(c) can be sustained when the underlying addition has been deleted by the appellate authority.

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 : A : NEW DELHI

Before: SHRI R.S. SYAL, AM & MS SUCHITRA KAMBLE, JM

For Appellant: Shri A.K. Jain, CA
For Respondent: Shri S.K. Jain, DR
Hearing: 28.07.2016Pronounced: 29.07.2016

ORDER

PER R.S. SYAL, AM:

1.

This appeal filed by the assessee arises out of the order passed by the CIT(A) on 19.12.2013 in relation to the assessment year 2006-07 confirming the penalty imposed by the AO u/s 271(1)(c) of the Act.

2.

At the time of hearing, it was submitted by the ld. AR that the addition on the basis of which the penalty was imposed has been deleted by the Tribunal vide order dated 28th June, 2016 in ITA No.3828/Del/2010. A copy of the order has been placed on record. The ld. DR did not controvert this factual position stated on behalf of the assessee.

3.

We have heard the rival but common submissions and perused the relevant material on record. Since the addition on the basis of which the penalty has been imposed, stands deleted by the Tribunal in quantum proceedings and there is nothing on record to demonstrate that the order of the tribunal has been modified or reversed by the Hon’ble High Court, the impugned penalty cannot sustain. The same is, therefore, cancelled.

4.

In the result, the appeal is allowed.

The order pronounced in the open court on 29.07.2016.

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