INCOME TAX OFFICER WARD-2(2)(3), GHAZIABAD V. SANJAY THAKUR, GHAZIABAD

ITA 917/DEL/2024

AI Insights

The case involves an appeal by the Revenue against the order of the Ld. CIT(Appeals)-NFAC, Delhi, which had deleted a penalty imposed under section 271(1)(c) of the Income Tax Act for the assessment year 2011-12. The penalty was initially levied based on certain quantum additions made by the Assessing Officer, which were later deleted by the ITAT in a separate proceeding. The Revenue challenged the CIT(A)'s decision, arguing that the penalty should stand despite the deletion of the quantum additions, as the department's appeal against the ITAT's decision was still pending before the Hon'ble High Court, Allahabad. However, the CIT(A) found that since the ITAT had deleted the additions, the penalty could not be sustained.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 43517 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Other Referred Cases: ITA No.3559/Del/2015
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAM KRISHAN MEENA
• Section: 271(1)(c)

Judgement Text

"I.T.A.No.917/Del/2024 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER आ.अ.सं/.I.T.A No.917/Del/2024 िनधा\tरणवष\t/Assessment Year: 2011-12 Income Tax Officer, Ward-2(2)(3), 1st Floor, CGO-II, Hapur Chungi Ghaziabad, Uttar Pradesh. बनाम Vs. Sanjay Thakur, 703, 7th Floor, Satyam Ansal Building, RDC, Ghaziabad, Uttar Pradesh. PAN No.AJRPT9741P अपीलाथ\u0012 Appellant \u0014\u0015यथ\u0012/Respondent िनधा\u0007\bरतीक\rओरसे /Assessee by None राज\u0012वक\rओरसे /Revenue by Shri Ram Krishan Meena, Sr. DR सुनवाईक\rतारीख/ Date of hearing: 07.08.2024 उ\u0018ोषणाक\rतारीख/Pronouncement on 28.01.2025 आदेश /O R D E R This appeal is filed by the Revenue against the order of the Ld. CIT(Appeals)-NFAC, Delhi dated 04.01.2024 for the AY 2011-12 in deleting the penalty levied u/s 271(1)(c) of the I.T. Act. The Revenue in its appeal raised the following grounds: - 1. “Whether the Ld. CIT(A) is correct in holding that the penalty order has no legs to stand and hence it is not sustainable, as ITAT, Delhi has deleted the addition made in original assessment order, despite the fact that the department’s appeal is pending before the Hon’ble High Court, Allahabad against the decision of ITAT, Delhi-2. 2. Whether, the Ld. CIT(A) has not erred in not deciding the case on merits. I.T.A.No.917/Del/2024 2 3. That the appellant craves leave to add, modify, amend or delete any of the grounds of appeals at the time of hearing and all the above grounds are without prejudice to each other.” 2. In spite of issue of notice, none appeared on behalf of the assessee. On perusal of the grounds of appeal raised by the Revenue it is noticed that the quantum addition made by the Assessing Officer in the assessment proceedings has been deleted by the Tribunal in which case the order imposing penalty u/s 271(1)(c) of the Act will not survive. On a query from the Bench to the Ld. DR as to whether the quantum addition/disallowance is deleted by the Tribunal, the Ld. DR fairly submitted that it is the finding of the Ld. CIT(Appeals) that the quantum addition has been deleted by the Tribunal in ITA No.3559/Del/2015 by order dated 06.11.2018 as evident from para 6 of the Ld. CIT(Appeals) order. 3. In spite of issue of notice none appeared on behalf of the assessee and therefore this appeal is disposed of on hearing the Ld. DR. 4. On perusal of the order of the Ld. CIT(Appeals) it is observed that the penalty levied u/s 271(1)(c) by the Assessing Officer has been deleted observing as under: - I.T.A.No.917/Del/2024 3 “I have carefully considered the facts of the case and the order u/s 271(1)(c) of the Act. The appellant in his reply dated 07.08.2023 has submitted that the additions made in the assessment order on which basis impugned penalty order was passed were already deleted by the Hon’ble ITAT, Delhi in ITA NO.3559/Del/2015 vide order dated 06.11.2018. As the additions made by the AO have been deleted by the ITAT, the penalty order has no legs to stand and hence it is not sustainable. In view of this, this appeal is also allowed.” 5. As could be seen from the above, the quantum addition made in the assessment has been deleted by the Tribunal in ITA No.3559/Del/2015 by order dated 06.11.2018. Since the quantum addition has been deleted the penalty levied on the basis of such quantum addition made in the assessment has no legs to stand. Thus, the Ld. CIT(Appeals) has rightly deleted the penalty and the order of the Ld. CIT(Appeals) is hereby sustained. Grounds raised by the Revenue are rejected. 6. In the result, appeal of the Revenue stands dismissed. Order pronounced in the open court on 28/01/2025 Sd/- (C.N. PRASAD) JUDICIAL MEMBER Dated: 28.01.2025 *Kavita Arora, Sr. P.S. Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. By order Assistant Registrar, ITAT: Delhi Benches-Delhi "