ITO WARD-20(1), NEW DELHI vs. PRADNESH CONSTRUCTION PVT. LTD, NEW DELHI

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ITA 4885/DEL/2019Status: DisposedITAT Delhi06 December 2023AY 2013-14Bench: SH. N. K. BILLAIYA (Accountant Member), MS. ASTHA CHANDRA (Judicial Member)2 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the foundational addition leading to the penalty was deleted, the penalty order had no basis. Therefore, the deletion of the penalty by the CIT(A) was justified.

What were the facts?

The Assessing Officer (AO) levied a penalty under Section 271(1)(c) of the Income Tax Act based on a significant addition made to the assessee's income. The quantum addition itself was later deleted by the CIT(A) and upheld by the Tribunal.

What were the issues?

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

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 144

AI-generated summary — verify with the full judgment below

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

Before: SH. N. K. BILLAIYA & MS. ASTHA CHANDRA

Hearing: 06/12/2023Pronounced: 06/12/2023

BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER Assessment Year: 2013-14 ITO Vs. Pradnesh Construction Ward- 20 (1) Pvt. Ltd. B-165, Flat No.D, New Delhi Ground Floor, Insa Manzil New, Ashok Nagar, New Delhi PAN No.AAGCP0048J (APPELLANT) (RESPONDENT) Appellant by Sh. P.N. Baranwal, CIT DR Respondent by None Date of hearing: 06/12/2023 Date of Pronouncement: 06/12/2023 ORDER

PER N. K. BILLAIYA, AM:

1.

This appeal by the revenue is preferred against the order of the CIT(A)-38, New Delhi dated 06.03.2019 pertaining to A.Y.2013-14.

2.

The solitary grievance of the revenue is that the CIT(A) erred in deleting the penalty of Rs.107262818/- levied by the AO u/s. 271 (1)(c) of the Act. 3. The roots for the levy of penalty lie in the assessment order dated 29.03.2016 framed u/s. 144 of the Act by which returned of Rs.25990/- was assessed at Rs.33,06,24,920/-. Penalty proceedings were separately initiated. 4. The quarrel relating to the quantum addition travelled upto the Tribunal and the Tribunal in upheld the order of the CIT(A) who had deleted the quantum addition. Since the very foundation has been removed the penalty has no legs to stand and the CIT(A) has rightly deleted the impugned penalty which calls for no interference. 5. In the result, the appeal of the revenue is dismissed. 6. Decision announced in the open court on 06.12.2023.

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