ACIT CENTRAL CIRCLE-14, NEW DELHI vs. M M BUILDCON PVT LTD, NEW DELHI

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ITA 1433/DEL/2020Status: DisposedITAT Delhi24 April 2023AY 2008-093 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the assessment order, which formed the foundation for the penalties, was annulled, the penalties must also fall. Therefore, the Assessing Officer was directed to delete the impugned penalties.

What were the facts?

The assessee's appeals were against penalties levied under Sections 271(1)(c) and 271AAA. The basis for these penalties was the assessment order which was subsequently annulled by the Tribunal.

What were the issues?

Whether penalties levied under Sections 271(1)(c) and 271AAA are sustainable when the underlying assessment order has been annulled.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 271AAA

AI-generated summary — verify with the full judgment below

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

Before: SH. N. K. BILLAIYA & SH. ANUBHAV SHARMA

For Appellant: Ms Monika Agarwal, Advocate
For Respondent: Ms. Sarita Kumari, CIT DR
Hearing: 20/04/2023Pronounced: 24/04/2023

PER N. K. BILLAIYA, AM: is the appeal by the assessee preferred against the order of the CIT(A)-26, New Delhi dated 30.01.2020 pertaining to A.Y.2008-09 against the levy of penalty u/s. 271(1)(c) of the Act.

1.

is the appeal by the assessee preferred against the order of the CIT(A)-26, New Delhi dated 30.01.2020 pertaining to A.Y.2008-09 against the levy of penalty u/s. 271AAA of the Act and CIT(A)-26, New Delhi dated 30.01.2020 pertaining to A.Y.2008-09 against the reduction of penalty levied u/s. 271(1)(c) of the Act from 300% to 250% of the Act.

3.

At the very outset the Counsel for the assessee drew our attention to the decision of this Tribunal in a bunch of 111 appeals and pointed that the entire assessments basis which the impugned penalties have been levied has been annulled by the Tribunal by the consolidated order dated 08.02.2023. The Counsel supplied the copy of the decision of Tribunal.

4.

The DR could not bring any distinguishing decision in favour of the revenue.

5.

We have carefully perused the orders of the authorities below. We find force in the contention of the Counsel. The coordinate Bench while deciding the bunch of 111 appeals has considered the appeal of the captioned assessee at Sr. No.14 and at para-39 of its order held as under :-

“39. Considering the facts from all possible angles, we have no hesitation to hold that the approval granted by the Addl.

CIT is mechanical and without application of mind and the assessment order so framed pursuant to such approval u/s.143(3) r.w.s. 153A of the Act is bad in law and deserves to be annulled.”

6.

Since foundation has been removed the super structure must fall. The AO is accordingly directed to delete the impugned penalty.

7.

In the result the appeal of the assessee are allowed and that of the revenue is dismissed.

Order pronounced in the open court on 24.04.2023.

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