PATTI RAM,DELHI vs. ITO, WARD- 26(1), NEW DELHI

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ITA 1800/DEL/2018Status: DisposedITAT Delhi15 July 2021AY 2007-084 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 assessment order, which formed the basis for the penalty, was quashed, the penalty itself should be deleted. Consequently, the AO was directed to remove the penalty.

What were the facts?

The assessee's appeal was against the CIT(A)'s confirmation of a penalty levied under Section 271(1)(c). The penalty stemmed from an assessment order that was later quashed by the Income Tax Appellate Tribunal.

What were the issues?

The primary issue was whether a penalty under Section 271(1)(c) could be sustained when the assessment order giving rise to the penalty was subsequently quashed by a higher appellate authority.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘F’, NEW DELHI

Before: SH. N. K. BILLAIYA & SH. MAHAVIR PRASAD

Hearing: 15/07/2021Pronounced: 15/07/2021

This appeal filed by the assessee is preferred against the order of the CIT(A)-15, New Delhi dated 29.12.2017 for A.Y. 2007-08.

2.

The sum and substance of the grievance of the assessee is that the CIT(A) erred in confirming the penalty levied u/s. 271 (1) (c) of the Act by the AO amounting to Rs.2925851/-.

3.

The roots for the levy of penalty lie in the assessment order dated 19.12.2011 framed u/s. 143 (3) r.w.s. 147 of the Act.

4.

The quarrel relating to the additions made in the assessment order travelled upto the Tribunal and the Tribunal vide order dated 07.09.2018 in quashed the assessment order. The relevant findings of the Tribunal read as under :-

5.

Since the foundation has been removed by the Tribunal the levy of penalty should fall. We direct the AO to delete the penalty levied u/s. 271 (1) (c).

6.

In the result, the appeal filed by the assessee is allowed.

7.

Decision announced in the open court in the presence of both the representatives on 15.07.2021.

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