ACIT Central circle -14, New Delhi V. Gopal Kumar Goyal, New Delhi

ITA 1434/DEL/2020

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals)-XXVI, New Delhi, which pertained to a penalty imposed under Section 271(1)(c) of the Income Tax Act, 1961 for the Assessment Year 2008-09. The penalty of Rs. 34,74,81,470 was initially imposed by the Assessing Officer. However, the quantum assessment that led to this penalty was later quashed by the Tribunal in a separate but related case. During the hearing, the counsel for the respondent highlighted this development, leading to the dismissal of the Revenue's appeal and the deletion of the penalty.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121523 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 21-02-2023
• Assessment Year: 2008-2009
• Appeal Filed On: 22-07-2020
• Other Referred Cases: ITA No.1552/Del/2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.1434/DEL/2020 Assessment Years 2008-09 ACIT, Central Circle-14, New Delhi. v. Gopal Kumar Goyal, Flat No.4, RR Apartments, 3- 4, Mangalpuri, New Delhi. TAN/PAN: AEFPG8370J (Appellant) (Respondent) Appellant by: Ms. Monika Agarwal, CA Respondent by: Shri T. James Singson, CIT-DR Date of hearing: 22 02 2023 Date of pronouncement: 22 02 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed by the Revenue against the order of the Commissioner of Income Tax (Appeals)-XXVI, New Delhi [‘ CIT (A )’ i n shor t] da te d 30. 01. 2020 aris ing from t he penalt y ord er da te d 31. 03.2019 passe d b y t he A sses sing O fficer under Sect ion 271(1)(c) of the Income T ax Ac t, 1 961 ( the A ct) concerning AY 2008-09. 2. As per its grounds of appeal, the Revenue has challenged the imposition of penalty of Rs. 34,74,81,470/- imposed by the Assessing Officer u/s. 271(1)(c) of the Act. 3. When the matter was called for hearing in the captioned Revenue’s appeal, the ld. counsel for the assessee at the outset submitted that the quantum I.T.A. No.1434/DEL/2020 2 assessment giving rise to addition stands quashed by the Co-ordinate Bench of the Tribunal in ITA No.1552/Del/2018 order dated 08.02.2023 and thus the basis for imposing penalty has faded into oblivion and has ceased to exist. 4. Having regard to the assertion made on behalf of the assessee and in the light of the order of the Co-ordinate Bench in quantum proceedings, the edifice for imposing penalty has clearly ceased to exist. Hence, the penalty imposed in question does not survive any more. Accordingly, the penalty imposed in question stands deleted. 3. In the result, the appeal of the Revenue is dismissed. Order was pronounced in the open Court on 22.02.2023. Sd/- Sd/- . [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 02.2023 Prabhat