AKG CONSULTANTS PVT. LTD.,KANPUR vs. DCIT, NEW DELHI

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ITA 2803/DEL/2014Status: DisposedITAT Delhi23 June 2016AY 2004-052 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 revised assessed income was equivalent to the returned income, there was no basis for levying a penalty under Section 271(1)(c). Therefore, the penalty was cancelled.

What were the facts?

The Assessing Officer (AO) initially determined the assessee's total income at Rs. 44,92,854/-, which was higher than the declared income. Consequently, a penalty under Section 271(1)(c) was levied. However, a subsequent order under Section 154/153 revised the total income to Rs. 29,76,810/-, which matched the returned income.

What were the issues?

The primary issue was the validity of a penalty levied under Section 271(1)(c) when the final assessed income matched the returned income after a subsequent revision.

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 BENCH “SMC-2” NEW DELHI

Before: SHRI S.V. MEHROTRA :

For Respondent: Shri N.J. Singh Sr. DR
Hearing: 14/06/2016

ITA ns. 2803/Del/2014 Asstt. Yr: 2004-05 AKG Consultants Private Limited, Vs. DCIT Central Cir. 8, (Formerly AKG Consultants Ltd.) New Delhi. 14, Ratan Mahal, 15/197, Civil Lines, Kanpur-208001. PAN: AABCA 7844 C ( Appellant ) (Respondent) Appellant by : None Respondent by : Shri N.J. Singh Sr. DR Date of hearing : 14/06/2016. Date of order : 23/06/2016. O R D E R This is assessee’s appeal against the order dated 18.02.2014, passed by the ld. CIT(A)-XXXII, New Delhi in appeal no. 63/12-13, confirming the action of AO in levying penalty u/s 271(1)(c) of the I.T. Act, relating to AY 2004-05.

2.

Sole effective ground raised is as under: “Because the learned CIT(A) has erred on facts and in law in confirming the penalty of Rs. 5,45,879/- u/s 271(1)(c) of the Income Tax Act, 1961.”

3.

Brief facts of the case are that AO had passed the assessment order u/s 143(3)/ 263, determining the total income at Rs. 44,92,854/- as against the declared income of Rs. 29,76,811/-. The AO had also initiated penalty proceedings u/s 271(1)(c) and levied penalty of Rs. 5,45,879/- vide penalty order dated 29.6.2012. The penalty has been confirmed by ld. CIT(A). Aggrieved, the assessee is in appeal before the ITAT.

4.

None put in appearance on behalf of the assessee at the hearing. I proceed to dispose of the appeal, ex parte, qua the assessee on merits and in that process I have heard ld. DR and perused the material available on record including the written submissions filed on behalf of the assessee. 5. Along with written submissions, the assessee has filed on record copy of order u/s 154/153 passed by the AO on 23.4.2015, determining the total income at Rs. 29,76,810/-. It is submitted that since the assessee’s income is equivalent to returned income, the penalty in question is not sustainable. 6. Having heard ld. DR and going through the material available on record, I find that facts are not disputed and since the assessed and returned income are same, there is no basis for levy of penalty u/s 271(1)(c) of the I.T. Act. Accordingly, the impugned penalty, levied by AO and confirmed by ld. CIT(A) u/s 271(1)(c), is cancelled. 7. In the result, assessee’s appeal is allowed. Order pronouncement in open court on 23/06/2016. Sd/- (S.V. MEHROTRA) ACCOUNTANT MEMBER Dated: 23/06/2016. *MP* Copy of order to: 1. Assessee 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, New Delhi.

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