ERA INFRA ENGINEERING LIMITED,NOIDA V. DCIT CENTRAL CIRCLE-28, DELHI

ITA 4059/DEL/2024

AI Insights

Era Infra Engineering Ltd. filed appeals against the penalty orders issued by the Commissioner of Income Tax (Appeals)-31, New Delhi, for the Assessment Years 2009-10 and 2010-11. The penalties were imposed following the additions made by the A.O. in the respective assessment years. However, the ITAT had previously deleted these additions in 2009-10 and remanded the issue for 2010-11 back to the A.O. with directions for a fresh assessment. The main contention of the appellant was that the penalties were unjustified as the primary issues leading to the penalties were either resolved in their favor or were still under reconsideration, making the penalties premature. The Departmental Representative did not contest the factual submissions but relied on the lower authorities' decisions. The ITAT, considering the previous rulings, decided in favor of the appellant, Era Infra Engineering Ltd., and deleted the penalties.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23060 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Laws Referred To: Income-tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Assessee Lawyers: CHINU BHASIN
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

" 1 ITA Nos. 4058 & 4059/Del/2024 Era Infra Engineering Ltd. Vs. DCIT IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘B’ NEW DELHI) BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SH. YOGESH KUMAR U.S., JUDICIAL MEMBER ITA No. 4058/Del/2024 (A.Y. 2009-10) ITA No. 4059/Del/2024 (A.Y. 2010-11) Era Infra Engineering Limited C-56,/41, Sector-62, Noida, Uttar Pradesh, PAN: AAACE1268K Vs. DCIT Central Circle-28 New Delhi Appellant Respondent Assessee by Ms. Chinu Bhasin, CA Revenue by Sh. Rajesh Kumar Dhanesta, SR (DR) Date of Hearing 14/01/2025 Date of Pronouncement 22/01/2025 ORDER PER YOGESH KUMAR, U.S. JM: Both the above captioned appeals are filed by the Assessee against the order of the Commissioner of Income Tax (Appeals)-31 (‘Ld. CIT(A) for short) , New Delhi, dated 07/11/2019 for Assessment Year 2009-10 and 2010-11 respectively. 2 ITA Nos. 4058 & 4059/Del/2024 Era Infra Engineering Ltd. Vs. DCIT 2. The Grounds of Appeal are as under:- ITA No. 4058/Del/2024 (A.Y. 2009-10) “1. That the order passed u/s 271(1)(c) of the Income-tax Act (\"the Act\") is bad in law and void-ab-initio. 2. That the impugned order passed u/s 271(1)(c) ought to be quashed as the merits appeal has already been decided in favor of the appellant and thus, the penalty proceedings do not survive. 3. That the Hon'ble ITAT vide order dated 20.01.2020 has deleted the additions in the quantum appeal, thus, present penalty ought to be deleted. 4. That the penalty u/s 271(1)(c) ought not to be levied for mere non-acceptance of a bonafide and genuine claim made by the Assessee. 5. That the penalty u/s 271(1)(c) ought not to be levied for a claim which is debatable in nature. 6. That the Appellant craves to add/delete/modify any grounds of appeal required.” ITA No. 4059/Del/2024 (A.Y. 2010-11) That the order passed u/s 271(1)(c) of the Income-tax Act ('the Act\") is bad in law and void-ab-initio. 2. That the impugned order passed u/s 271(1)(c) ought to be quashed as the merits appeal has already been decided of the appellant whereby the issue has been set-aside to the file of the AO and the C*Pi(A) proceedings against the same are still pending, thus, the penalty proceedings do not survive. 3 ITA Nos. 4058 & 4059/Del/2024 Era Infra Engineering Ltd. Vs. DCIT 3. That the Hon'ble ITAT vide order dated 21.01.2020 has remitted the quantum appeal to the AO along with specific directions and the CIT(A) against the same is still pending for disposal, thus, present penalty ought to be deleted. 4. That the penalty u/s 271(1)(c) ought not to be levied for mere non-acceptance of a bonafide and genuine claim made by the Assessee. 5. That the penalty u/s 271(1)(c) ought not to be levied for a claim which is debatable in nature. 6.That the Appellant craves to add/delete/modify any grounds of appeal if required. 3. The Ld. Counsel for the Assessee submitted that the addition made for the Assessment Year 2009-10 has been deleted by the Tribunal in ITA No. 2591/Del/2016 vide order dated 20/01/2020 and further submitted that the additions made for Assessment Year 2010-11 is also set aside by the Tribunal in ITA No. 2592/Del/2016 and the issue has been remanded to the file of the A.O. with a direction to pass a fresh assessment order. Therefore, submitted that the impugned orders of penalty which have been upheld by the CIT(A) deserves to be deleted. 4. Per contra, the Ld. Departmental Representative did not dispute the factual aspect canvassed by the Ld. Assessee's Representative. However, relying on the orders of the Lower Authorities, sought for dismissal of the Appeals filed by the Assessee. 4 ITA Nos. 4058 & 4059/Del/2024 Era Infra Engineering Ltd. Vs. DCIT 5. We have heard both the parties and perused the material available on record and also the orders of the Tribunal in quantum appeal for Assessment Year 2009-10 and 2010-11. Considering the fact that the additions made by the A.O. which has been upheld by the Ld. CIT(A) for Assessment Year 2009-10 has been deleted by the Tribunal and the additions made in the Assessment Year 2010-11 also been set aside and remanded the issue to the file of the A.O. for fresh adjudication, the impugned orders of penalty dated 31/03/2018 for Assessment Year 2009-10 and 2010-11 does not survive. Accordingly, we delete the order of penalty. 6. In the result, the Appeals of the Assessee in ITA No. 4058/Del/2024 and 4059/Del/2024 are allowed. Order pronounced in the open court on 22nd January, 2025 Sd/- Sd/- (M. BALAGANESH) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 22.01.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI 5 ITA Nos. 4058 & 4059/Del/2024 Era Infra Engineering Ltd. Vs. DCIT "