PUNJABI CO-OPERATIVE HOUSE BUILDING SOCIETY,CHANDIGARH vs. DCIT, MOHALI

ITA 287/CHANDI/2015Status: DisposedITAT Chandigarh20 March 2018AY 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 allowed the assessee's appeal, stating that the penalty order cannot survive if the assessment order on which it was based has been set aside. The Tribunal referred to its earlier order in the quantum proceedings for the same assessment year.

What were the facts?

The assessee's appeal challenged a penalty order upheld by the CIT(Appeals). The penalty was imposed based on an earlier assessment order.

What were the issues?

Whether a penalty order can be sustained when the underlying assessment order has been set aside. The validity of the penalty in light of the set-aside assessment.

Which sections of the Income-tax Act were involved?

Not explicitly mentioned, but implied to relate to penalty provisions.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DIVISION BENCH ‘B’, CHANDIGARH

Before: MS. DIVA SINGH & MS. ANNAPURNA GUPTA

For Appellant: Shri Tej Mohan Singh

For Respondent: Shri Ashish Abrol, CIT-DR

Hearing: 21.02.2018Pronounced: 20.03.2018

PER DIVA SINGH,JM

The present appeal has been filed by the assessee assailing the

correctness of the order dated 28.01.2015 of CIT(Appeals)-2 Chandigarh

pertaining to 2007-08 assessment years wherein the penalty imposed

upon the assessee has been upheld. .

The ld. AR inviting attention to order dated 05.01.2018 in the case of the assessee wherein the issues raised by the assessee and the Revenue in ITA 310/2012 and ITA 556/CHD/2012 have been restored back to the file of the AO. Accordingly, it was his prayer that the penalty order can not survive. The ld. CIT-DR considering the submissions and on going through the aforesaid order of the ITAT passed in the quantum proceedings in the year under consideration did not raise any objection opposing the submission made. 3. We have heard the rival submissions and perused the material on record. On consideration of the aforesaid order of the ITAT, the appeal of the assessee is allowed as the occasion to consider the imposition of

ITA 287/CHD/2015 A.Y. 2007-08 Page 2 of 2

penalty does not arise once the order on the basis of which penalty has been imposed itself is set aside. Said order was pronounced in the Open Court at the time of hearing itself. 4. In the result, the appeal of the assessee is allowed. Order pronounced in the Open Court on 20.03. 2018. Sd/- Sd/-

(ANNAPURNA GUPTA) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER

‘Poonam’ Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR

Asstt. Registrar ITAT,Chandigarh.

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