ACIT-1(1), INDORE, INDORE vs. LIFE CARE INTERNATIONAL, INDORE

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ITA 411/IND/2023Status: DisposedITAT Indore26 July 2024AY 2011-12Bench: SHRI VIJAY PAL RAO (Judicial Member), SHRI B.M. BIYANI (Accountant Member)3 pages
AI SummaryDismissed

What did the Tribunal hold?

The Commissioner (Appeals) correctly deleted the penalty as the quantum on which it was levied was already deleted by the ITAT. The revenue's appeal against this deletion was found to be devoid of merit.

What were the facts?

The Assessing Officer made additions during scrutiny assessment and levied a penalty under Section 271(1)(c). The Income Tax Appellate Tribunal (ITAT) had previously deleted all additions made in the assessment. The Commissioner (Appeals) subsequently deleted the penalty, stating it had no basis after the additions were deleted.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the additions on which it was levied have been deleted by a higher 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, INDORE BENCH, INDORE

Before: SHRI VIJAY PAL RAO & SHRI B.M. BIYANI

For Appellant: Shri S.N.Agrawal, AR
For Respondent: Shri Ashish Porwal, Sr. DR
Hearing: 24.07.2024Pronounced: 26.07.2024

आदेश / O R D E R

Per B.M. Biyani, AM:

1.

Feeling aggrieved by appeal-order dated 07.09.2023 passed by learned CIT(A), NFAC, Delhi [“CIT(A)”] which in turn arises out of penalty-order dated 30.03.2019 passed by learned ITO-3(1), Indore [“AO”] u/s 271(1)(c) of Income- tax Act, 1961 [“the Act”] for assessment-year [“AY”] 2011-12, the revenue has filed this appeal on the grounds mentioned in Form No. 36.

2.

Heard the learned Representatives of both sides and case-record perused.

ACIT,Indore vs. Life Care International, Indore Assessment Year 2011-12

3.

The background facts leading to this appeal are such that the assessment of relevant AY 2011-12 under consideration was completed by AO by way of scrutiny assessment u/s 143(3) after making certain additions.

Thereafter, the AO passed penalty-order u/s 271(1)(c) on 30.03.201915.03.2019 imposing a penalty of Rs. 1,02,17,000/- qua the additions made in assessment. Against assessment-order, the assessee went in appellate proceedings upto ITAT, Indore in to 337/Ind/2018 and the ITAT has already decided assessee’s appeal on 01.09.2021 and deleted all additions made in assessment. The assessee also went in separate appeal against penalty-order whereupon the CIT(A) has deleted penalty by concluding thus:

“Since the quantum on which the penalty under section 271(1)(c) was levied has been deleted by Hon’ble ITAT, penalty u/s 271(1)(c) of the Act has no basis and is held as ab initio void.”

Now, the revenue has come in next appeal assailing the order of CIT(A). 4. Ld. DR for revenue fairly agreed that there is no mistake in the order of CIT(A). It appears that the revenue has filed this appeal only to keep the issue alive but there is no merit in the grounds raised by revenue. Faced with this situation, we are inclined to dismiss this appeal being devoid of any merit.

ACIT,Indore vs. Life Care International, Indore Assessment Year 2011-12

5.

Resultantly, this appeal is dismissed.

Order pronounced in open court on 26.07.2024.

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