ITO WARD-20(1), NEW DELHI vs. PRADNESH CONSTRUCTION PVT. LTD, NEW DELHI
In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.
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?
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
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:
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.
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.
More judgments on Section 271(1)(c)
- Ajaybhai Dineshbhai Bagdai, Near Central… vs The Income Tax Officer, Ward-1(2)(1), New…ITA 74/RJT/2026[2013-14]Status: Disposed19 Oct 2026AY 2013-14
- Shalin Jayantbhai Desai, Vadodara vs ACIT, Circle-4(2), Vadodara Present…ITA 2569/AHD/2026[2010-11]Status: Disposed19 Oct 2026AY 2010-11
- Neo Structo Construction P. Ltd., Ahmedabad vs The Pr. CIT- 3, AhmedabadITA 1216/AHD/2026[2015-2016]Status: Disposed16 Oct 2026AY 2015-2016
- Hetal Vinodchandra Sheth, Ahmedabad vs The ITO, Ward-5(3)(1), AhmedabadITA 2370/AHD/2025[2014-15]Status: Disposed16 Oct 2026AY 2014-15
- Hetal Vinodchandra Sheth, Ahmedabad vs The ITO, Ward-5(3)(1), AhmedabadITA 2369/AHD/2025[2014-15]Status: Disposed16 Oct 2026AY 2014-15
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