AGROHA FINCAP LTD,NEW DELHI vs. ITO WARD 1(4), DEHLI

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ITA 1975/DEL/2022Status: DisposedITAT Delhi25 July 2023AY 2011-122 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 quantum additions were deleted, the penalty levied with reference to those additions no longer survived. Therefore, the penalty was deleted.

What were the facts?

The assessee's appeal was against a penalty sustained under Section 271(1)(c). The assessee argued that the penalty was levied with reference to quantum additions which had already been deleted by the Tribunal.

What were the issues?

Whether a penalty under Section 271(1)(c) can be sustained when the underlying additions have been deleted by the appellate authority.

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 BENCH, ‘A’: NEW DELHI

Before: SHRI SHAMIM YAHYA & SHRI YOGESH KUMAR US

Hearing: 20.07.2023Pronounced: 25.07.2023

ORDER PER SHAMIM YAHYA, AM,

This appeal by the assessee is directed against the order of the National Faceless Appeal Centre (NFAC), New Delhi, dated 22.07.2022 pertaining to Assessment Year 2011-12, in which penalty u/s 271(1)(c) has been sustained.

2.

At the outset before us, the ld. Counsel for the assessee submitted that the quantum addition in this case has been already deleted by the Tribunal vide order dated 26.05.2023 in for AY 2011-12. Hence, this penalty u/s 271(1)(c) levied with reference to those additions does not survive.

3.

Per Contra, the ld. Departmental Representative could not rebut this proposition.

4.

Accordingly, since quantum addition has been deleted by the Tribunal, the penalty appeal with respect to those additions does not survive and hence, penalty is deleted.

5.

In the result, the appeal filed by the assessee stands allowed.

Order pronounced in the open court on 25th July, 2023.

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