BRIJWASI IMPEX PRIVATE LTD.,DELHI vs. ACIT, NEW DELHI

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ITA 5195/DEL/2013Status: DisposedITAT Delhi03 February 2016AY 2007-083 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 quashed the penalty levied by the Assessing Officer. This was based on a previous order of a co-ordinate bench in the assessee's own case where the quantum addition was deleted.

What were the facts?

The assessee company, engaged in trading gold, silver, and immovable property, filed its return declaring an income of Rs. 5,25,420/-. The Assessing Officer assessed the total income at Rs. 32,25,420/- and initiated penalty proceedings under Section 271(1)(c).

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the underlying quantum addition 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 BENCHES : “A” NEW DELHI

Before: SHRI H.S.SIDHU, JM & AND SHRI J.SUDHAKAR REDDY, AM

O R D E R

PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER This is an appeal filed by the Assessee directed against the order of the Ld.Commissioner of Income Tax (Appeals)-XXXI, New Delhi dated 22.07.2013 pertaining to the Assessment Year (A.Y.) 2007-08, wherein penalty levied by the A.O. u/s 271(1)(c) of the Act was confirmed.

2.

Facts in brief:- The assessee is a company. During the year under assessment the assessee company was engaged in the business of trading in gold bullion and ornaments and silver articles. The company was also engaged in trading of immovable property. It filed its E-return of income on 31.10.2007 declaring income of Rs.5,25,420/-. The case was processed u/s 143(1) and selected for scrutiny. Notice was sent u/s 143(2) of the Act. AO initiated penalty proceedings u/s 271(1)(c ) of the Act by assessing the total income at Brijwasi Impex P.Ltd., Delhi Rs.32,25,420/-. Aggrieved the assessee went in appeal before the First Appellate Authority, who confirmed the penalty levied by the A.O.

3.

Further aggrieved the assessee is in appeal before us.

4.

We have heard Shri Rajiv Saxena, Ld.Counsel for the assessee and Shri KK Jaiswal, Ld.D.R. on behalf of the Revenue.

5.

After hearing rival contentions we find that the Delhi A Bench of the Tribunal in the assessee’s own case in ITA No.362/Del/11, ITA Nos. 1183 and 1184/Del/2011, ITA 1305/Del/11 for the AYs 2002-03, 2004-05, 2006-07 and 2007-08 vide its order dt. 30.10.2015, deleted the quantum addition. As the quantum addition was deleted, the penalty has no legs to stand. In view of the order of the Co-Ordinate Bench on merits, we quash the penalty levied.

6.

In the result, the appeal of the assessee is allowed. Order pronounced in the Open Court on 03rd .February, 2016.

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