M/S. D.S. DOORS (P) LTD.,NEW DELHI vs. ACIT, FARIDABAD

PDF · subscribers
ITA 32/DEL/2014Status: DisposedITAT Delhi30 March 2016AY 2001-023 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 additions forming the basis of the penalties were deleted, the penalties themselves could not survive. The Tribunal relied on the Supreme Court's decision in K.C Builders Vs ACIT.

What were the facts?

The assessee's appeals were against penalties levied under Section 271(1)(c) of the Income Tax Act. The penalties were based on additions made by the Assessing Officer. However, these additions had subsequently been deleted by the ITAT in earlier appeals.

What were the issues?

Whether penalties under Section 271(1)(c) can be sustained when the underlying additions on which they were based have been deleted.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

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

Hearing: 30.03.2016Pronounced: 30.03.2016

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI Before Sh. N. K. Saini, AM And Sh. H. S. Sidhu, JM 34 to 37/Del/2014 : Asstt. Years : 2001-02, 2003-04 to 2006-07 M/s D. S. Doors (P) Ltd. Vs Asstt. Commissioner of Income 11/7, Mathura Road, Tax, Central Circle-1, Faridabad Faridabad (APPELLANT) (RESPONDENT) PAN No. AAACD5805B Assessee by : Sh. Somil Agarwal, CA Revenue by : Sh. V. R. Sonbhadra, Sr. DR Date of Hearing : 30.03.2016 Date of Pronouncement : 30.03.2016 ORDER Per Bench:

These appeals by the assessee for the assessment year 2001-02, 2003-04 to 2006-07 are directed against common the order dated 29.11.2013 of ld. CIT(A) (Central), Gurgaon.

2.

Common issue is involved in these appeals which were heard together so these are being disposed off by this consolidated order for the sake of convenience and brevity.

3.

The only grievance of the assessee in these appeals relates to the sustenance of penalty levied by the AO u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred

2 34 to 37/Del/2014 D. S. Doors Pvt. Ltd. to as the Act) amounting to Rs.19,77,836, Rs.29,27,048/-, Rs.43,74,834/-, Rs.20,93,458/- and Rs.7,04,362/- for the assessment years 2001-02 & 2003-04 to 2006-07 respectively.

4.

During the course of hearing the ld. Counsel for the assessee at the very outset stated that the quantum additions on the basis of which the aforesaid penalties were levied by the AO, have been deleted by the ITAT in & 1988 to 1991/Del/2011 for the assessment years 2001-02 & 2003-04 to 2006-07 vide common order dated 12.03.2015 (copy of the said order was furnished which is placed on record). The aforesaid contention of the ld. Counsel for the assessee was not controverted by the ld. DR.

5.

After considering the submissions of both the parties and material on record, it is noticed that the additions on the basis of which the impugned penalties u/s 271(1)(c) of the Act amounting to Rs.19,77,836, Rs.29,27,048/-, Rs.43,74,834/-, Rs.20,93,458/ andRs.7,04,362/- for the assessment years 2001-02 & 2003-04 to 2006-07 respectively were confirmed by the ld. CIT(A), had been deleted by the ITAT vide aforesaid referred to order dated 12.03.2015. In the present case, the additions on the basis

3 34 to 37/Del/2014 D. S. Doors Pvt. Ltd. of which the impugned penalties u/s 271(1)(c) of the Act were levied, are now not in existence, therefore, the said penalties u/s 271(1)(c) of the Act do not survive, in view of the ratio laid down, on a similar issue by the Hon’ble Supreme Court in the case of K.C Builders Vs ACIT reported at 265 ITR 562 wherein it has been held as under:

“Where the additions made in the assessment order on the basis of which penalty for concealment is levied, are deleted, there remains no basis at all for levying penalty for concealment and, therefore, in such a case no penalty can survive and the penalty is liable to be cancelled.” 6. In view of the above, the impugned penalties u/s 271(1)(c) of the Act levied by the AO and sustained by the ld. CIT(A) are deleted.

7.

In the result, appeals of the assessee are allowed. (Order Pronounced in the Court on 30/03/2016)

More judgments on Section 271(1)(c)

All 25,141 judgments and leading authorities on Section 271(1)(c) →

Recent GST High Court judgments

Search GST case law →