M/S. PRAGATI VANIJAYA LIMITED,NEW DELHI vs. DCIT, NEW DELHI

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ITA 2277/DEL/2014Status: DisposedITAT Delhi05 October 2015AY 2007-082 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 if the additions made in the assessment are deleted in the quantum appeal, there is no basis to sustain a penalty under Section 271(1)(c). Consequently, the penalty was cancelled.

What were the facts?

The assessee's appeal concerns the assessment year 2007-08, challenging a penalty levied by the Assessing Officer. The assessee argued that since all additions made in the assessment were deleted by the Tribunal in the quantum appeal, the penalty should also be cancelled.

What were the issues?

Whether a penalty under Section 271(1)(c) can be sustained when the underlying additions leading to the penalty have been deleted in the quantum appeal.

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, IN THE INCOME TAX APPELLATE TRIBUNAL

Before: SHRI G.C. GUPTA

For Appellant: Shri Shubham Rastogi, Advocate
For Respondent: Shri Amrit Lal, DR
Hearing: 21.09.2015Pronounced: 05.10.2015

ORDER ORDER ORDER ORDER

This appeal by the assessee for the assessment year 2007-08 is directed against the order of learned CIT(A)-XVII, New Delhi dated 1st January, 2014.

2.

The only effective ground of appeal of the assessee is as under:-

“That the CIT(A) has, in view of the facts and circumstances of the case and in law, has grossly erred in upholding the penalty levied by ld.AO of Rs.14,30,550/- and the appellate order passed is illegal and bad in law.”

3.

Learned counsel for the assessee submitted that all the additions made in the assessment of the assessee have been deleted in appeal by the Tribunal in the quantum appeal of the assessee for the relevant assessment year 2007-08 in order dated 16th

2 ITA-2277/Del/2014 January, 2015 and, therefore, there remains no basis for sustaining penalty u/s 271(1)(c) of the Income-tax Act, 1961.

4.

Learned DR could not controvert the submissions of the learned counsel for the assessee.

5.

I have considered the submissions of both the sides and perused the order of the Assessing Officer and the learned CIT(A). I find that the additions made in the assessment of the assessee have been deleted by the Tribunal in the quantum appeal of the assessee for the relevant assessment year 2007-08 vide its order dated 16th January, 2015 (supra) and, therefore, there remains no basis to sustain the penalty imposed u/s 271(1)(c) of the Act, which is accordingly cancelled and the ground of appeal of the assessee is allowed.

6.

In the result, the appeal of the assessee is allowed. Decision pronounced in the open Court on 5th October, 2015.

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