ANIL KUMAR CHAUDHARY,NEW DELHI vs. ITO, NEW DELHI

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ITA 4254/DEL/2014Status: DisposedITAT Delhi30 September 2015AY 2000-013 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 addition made by the AO under Section 68, which formed the basis for the penalty, was subsequently deleted by the Tribunal in quantum proceedings, there was no justification for confirming the penalty.

What were the facts?

The assessee appealed against a penalty of Rs. 1,59,030 imposed under Section 271(1)(c) for the assessment year 2000-01. The penalty was based on an addition of Rs. 5,03,000 made by the AO under Section 68.

What were the issues?

Whether a penalty imposed under Section 271(1)(c) can be sustained when the underlying addition to income has been deleted.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES : SMC-I : NEW DELHI

Before: SHRI R.S. SYAL

For Appellant: Shri Mayur Jain, Advocate
For Respondent: Shri S.L. Anuragi, Sr. DR
Pronounced: 30.09.2015

ORDER This appeal by the assessee arises out of the order passed by the CIT(A) on 21.5.2014 confirming the penalty of Rs.1,59,030/- imposed by the AO u/s 271(1)(c) of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2000-01.

2.

I have heard the rival submissions and perused the relevant material on record. It is observed that the only basis for imposition and confirmation of penalty u/s 271(1)(c) is the addition of Rs.5,03,000/- made by the AO u/s 68 of the Act. It is noticed that the addition so made by the AO has been finally deleted by the Tribunal in quantum proceedings vide its order in dated 11.3.2015. A copy of such order has been placed on record. In view of the fact that the very foundation of penalty, being the making of addition has been deleted, there remains no occasion for confirming any penalty. I, therefore, order for the deletion of the penalty.

3.

In the result, the appeal is allowed.

The order pronounced in the open court on 30.09.2015.

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