DCIT, CENTRAL CIRCLE- 32, NEW DELHI vs. APPOLO TRAEXIM PVT. LTD., NEW DELHI

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ITA 7863/DEL/2017Status: DisposedITAT Delhi04 January 2021AY 2004-053 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that if the primary addition on which penalty is levied is deleted, the penalty cannot sustain. The appeal by the revenue against the deletion of penalty was dismissed.

What were the facts?

During a search, an addition of Rs. 1.5 crores was made for bogus share application money. The Assessing Officer (AO) initiated penalty proceedings under Section 271(1)(c). The Commissioner (Appeals) deleted the penalty because the addition itself was later deleted by a coordinate bench.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the addition on which it was levied has been deleted. The impact of a pending appeal by the revenue on the deletion of penalty.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 68,Section 153A,Section 143(3)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DELHI BENCH “A”: NEW DELHI

Before: SHRI BHAVNESH SAINI & SHRI PRASHANT MAHARISHI

For Respondent: Shri Prakash Dubey, Sr. DR
Hearing: 04/01/2021Pronounced: 04/01/2021

O R D E R PER PRASHANT MAHARISHI, A. M.

1.

This appeal is filed by the ld DCIT, Central Circle-32, New Delhi [ Ld AO] for Assessment Year 2004-05 wherein, the ld CIT(A) has deleted the penalty of Rs. 53,81,250/- imposed u/s 271(1)(c) of the Act by the ld AO for an addition of Rs. 1.5 crores. The ld CIT (A) deleted penalty for the reason that addition made by the ld AO of Rs. 1,50,00,000/- has been deleted by the coordinate bench. LD AO „s grievance is that the above order of the coordinate bench has not been accepted by the revenue and further appeal has been filed before the Hon‟ble Delhi High Court. Hence, this appeal.

2.

The brief fact of the case shows that a search and seizure operation was carried out on 19.01.2009. Notices u/s 153A of the act was issued on 02.06.2010. The assessee filed its return of income declaring loss of Rs. 1,08,448/- on 09.07.2010. The assessment u/s 153A read with section 143(3) of the Act was passed on 31.12.2010 wherein, an addition of Rs. 1,50,00,000/- was made in the hands of the assessee under Section 68 of Page | 1

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