ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(1), NAGPUR vs. FAIZ ZAKIR VALI, NAGPUR

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ITA 231/NAG/2022Status: DisposedITAT Nagpur06 August 2024AY 2010-11Bench: SHRI V. DURGA RAO (Judicial Member)2 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the quantum additions, which formed the basis for the penalty, were deleted in the assessee's appeal, the penalty has no basis. Therefore, the penalty order is unsustainable.

What were the facts?

The Revenue appealed against the deletion of penalty under section 271(1)(c) by the CIT(A). The penalty was levied on quantum additions made by the Assessing Officer.

What were the issues?

Whether the penalty under section 271(1)(c) can be sustained when the underlying quantum additions 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

Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR

Before: SHRI V. DURGA RAO & SHRI K.M. ROY, ACCOUNTANT, MEMBER

For Appellant: Smt. Veen Agrawal
For Respondent: Shri Kailash C. Kanojiya

Date of Hearing – 01/08/2024 Date of Order – 06/08/2024

O R D E R PER K.M. ROY, A.M.

The appeal has been filed by the Revenue challenging the impugned order dated 06/06/2022, passed by the learned Commissioner of Income Tax (Appeals)–3, Nagpur, [“learned CIT(A)”], for the assessment year 2010–11.

2.

In its appeal, though the Revenue has raised inasmuch as nine grounds, however, the sole issue raised in this appeal is, whether or not the the learned CIT(A) were justified in deleting the penalty under section 271(1)(c) of the Income Tax Act, 1961 ("the Act") for ` 1,04,13,300.

3.

Having heard both the parties, we find that the sole issue of imposing penalty arose out of the quantum additions made by the Assessing Officer

Faiz Zakir Vali ITA no.231/Nag./2022 which was confirmed by the learned CIT(A). However, when the matter travelled before us, these quantum additions were deleted by us in assessee’s appeal being ITA no.65/Nag./2021, for the assessment year 2010–11, vide order dated 06/08/2024. Consequently, we hold that since the quantum additions are deleted, penalty levied on such quantum additions have no legs to stand. Accordingly, the grounds of appeal raised by the Revenue are dismissed. Since the substratum of imposing penalty is destroyed, we refrain from adjudicating upon the merits of the case.

4.

In the result, appeal filed by the Revenue is dismissed. Order pronounced in the open Court on 06/08/2024

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