SHRI RAJESH BHATIA,DELHI vs. ITO, NEW DELHI

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ITA 1728/DEL/2015Status: DisposedITAT Delhi09 August 2018AY 2002-033 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 of Rs. 7 lakh, which formed the basis for the penalty, was deleted by the Tribunal in a prior appeal, the penalty could not be sustained.

What were the facts?

The Assessing Officer imposed a penalty of Rs. 2,10,000 under Section 271(1)(c) based on an addition of Rs. 7 lakh for two loans. The CIT(A) confirmed this penalty.

What were the issues?

Whether a penalty under Section 271(1)(c) can be sustained when the addition forming its basis has been deleted.

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 : F : NEW DELHI

Before: SHRI R.S. SYAL & SMT. BEENA A. PILLAI

For Appellant: Shri K.R. Manjani, Advocate
For Respondent: Shri Ravi Kant Gupta, Sr.DR
Hearing: 08.08.2018Pronounced: 09.08.2018

(Appellant) (Respondent) Appellant by : Shri K.R. Manjani, Advocate Respondent by: Shri Ravi Kant Gupta, Sr.DR Date of Hearing : 08.08.2018 Date of Pronouncement: 09.08.2018 ORDER PER R.S. SYAL, VP: This appeal by the assessee is directed against the order passed by the CIT(A) on 09.12.2014 confirming penalty of Rs.2,10,000/- imposed by the Assessing Officer u/s 271(1)(c) of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to Assessment Year 2002-03.

2.

We have heard both the sides and perused the relevant material on record. It is observed that the Assessing Officer imposed penalty of Rs.2,10,000/- in respect of addition of Rs.7 lac for two loans. The ld. CIT(A) sustained the penalty. The appeal of the assessee against the quantum addition came up for consideration before the Tribunal. Vide order dated 24.07.2015 in whose copy has been placed on record, the Tribunal has deleted the addition of Rs.7lac. Since the very foundation of the penalty, being the addition of Rs.7 lac, ceases to exist, there can be no question of any penalty. We, therefore, order to delete the penalty.

3.

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

The decision was pronounced in the open court on 09.08.2018.

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