YAMUNA ESTATES P.LTD,NEW DELHI vs. ITO WD 11(3)(4), MUMBAI

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ITA 999/MUM/2015Status: DisposedITAT Mumbai02 August 2016AY 2003-042 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 quantum addition, which formed the basis for the penalty, had been deleted by a previous order of the Tribunal, the penalty could not survive. Consequently, the penalty order was set aside.

What were the facts?

The assessee's appeal arose from a penalty levied under section 271(1)(c) of the Income Tax Act. The penalty was based on a quantum addition made by the Assessing Officer. The assessee contended that if the quantum addition was deleted, the penalty would not survive.

What were the issues?

The primary issue was whether a penalty under section 271(1)(c) could be sustained when the underlying quantum addition had 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, MUMBAI BENCHES “SMC”, MUMBAI

Before: SHRI MAHAVIR SINGH

For Appellant: Shri Vinod Rawat
For Respondent: Shri Sujit Bangar
Hearing: 02/08/2016

Date of Hearing : 02/08/2016 Date of pronouncement : 02 /08/2016 O R D ER

PER MAHAVIR SINGH, JM:

1.

This appeal by the assessee is arising out of the order of CIT(A)-18, Mumbai in Appeal No. CIT(A)-18/IT-67/ITO 8(3)(4)/2013-14 dt. 11/12/2014. Assessment was framed by ITO Ward- 8(3)(4) for the AY 2003-04 vide his order dated 30/12/2010, under section 143(3) r.w.s 147 of the Income Tax Act, 1961 (hereinafter ‘the Act’). The penalty under dispute was levied by the Assessing Officer under section 271(1)(c) of the Act vide his order dated 25/03/2013.

2.

The only issue in this appeal of the assessee against the order of CIT(A) confirming the levy of penalty by the AO under section 271(1)(c) of the Act.

3.

At the outset Ld. Counsel for the assessee stated that the quantum addition has been deleted by the Tribunal in vide order dt. 09/09/2015, the copy of order is placed on record. According to the Ld. Counsel once quantum addition is deleted penalty will not survive. On query from the bench, Ld. Sr Dr conceded the position and agreed that quantum has been deleted by Tribunal on which this penalty is based. In view of the above facts, that the quantum addition is deleted by the Tribunal, the penalty levied by AO and confirmed by the CIT(A) under section 271(1)(c) of the Act will not survive. Accordingly we set aside the order of the lower authority and deleted the penalty levied under section 271(1)(c) of the Act.

4.

In the result, appeal of the assessee is allowed.

Order pronounced in the open court on 02nd August, 2016.

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