MM Buildcon (P) Ltd, New Delhi V. DCIT CENTRAL CIRCLE-14, New Delhi

ITA 1462/DEL/2020

AI Insights

The case involves multiple appeals related to the assessment year 2008-09 concerning MM Buildcon (P) Ltd. The appeals were directed against the penalties imposed under sections 271(1)(c) and 271AAA of the Income Tax Act, as well as the revenue's appeal against the reduction of penalty by the CIT(A)-26, New Delhi. The tribunal referenced a previous consolidated decision involving 111 appeals, which annulled the assessments on grounds of mechanical approval by the Additional CIT without proper application of mind. This precedent was pivotal in the tribunal's decision to allow the assessee's appeals and dismiss the revenue's appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 116313 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 19-04-2023
• Assessment Year: 2008-2009
• Appeal Filed On: 04-08-2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.1462 & 1463/Del/2020 Assessment Year: 2008-09 MM Buildcon (P) Ltd Flat No.4, RR Apartments 3-4 Manglapuri PAN No. AAECM0924E Vs DCIT Central Circle -14 New Delhi (APPELLANT) (RESPONDENT) ITA No.1433/Del/2020 Assessment Year: 2008-09 DCIT Central Circle -14 New Delhi Vs MM Buildcon (P) Ltd Flat No.4, RR Apartments 3-4 Manglapuri PAN No. AAECM0924E (APPELLANT) (RESPONDENT) Appellant by Ms Monika Agarwal, Advocate Respondent by Ms. Sarita Kumari, CIT DR Date of hearing: 20/04/2023 Date of Pronouncement: 24/04/2023 ORDER PER N. K. BILLAIYA, AM: ITA No.1462/Del/2020 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. 2 2. ITA No.1463/Del/2020 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 ITA No.1433/Del/2020 is the appeal by the revenue preferred against the order of the 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. 3 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. SD/- SD/- [ANUBHAV SHARMA] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: .04.2023 *Neha* Copy forwarded to: 1. Appellant 2. Respondent 3. CITi 4. CIT(A) 5. DR Asst. Registrar ITAT, New Delhi