Shivgori Builders (P) Ltd, New Delhi V. DCIT CENTRAL CIRCLE-14, New Delhi

ITA 1464/DEL/2020

AI Insights

The case involves M/s Shivgori Builders [P] Ltd, the appellant, contesting a penalty of Rs. 27.20 lakhs imposed by the Assessing Officer under section 271AAA of the Income-tax Act, 1961, for the Assessment Year 2008-09. The penalty was contested on the grounds that the underlying assessment order had been annulled by the Tribunal in a related set of appeals, which included the assessee's appeal. The Department's representative argued that the annulment of the assessment order did not affect the levy of the penalty. However, the Tribunal, referencing its earlier decision, found that the annulment of the assessment order invalidated the foundation of the penalty, leading to the penalty's deletion.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301011 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 15-08-2023
• Assessment Year: 2008-2009
• Appeal Filed On: 04-08-2020
• Other Referred Cases: ITA No. 1288/DEL/2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘G’ BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI YOGESH KUMAR U.S, JUDICIAL MEMBER ITA No. 1464/DEL/2020 [A.Y 2008-09] M/s Shivgori Builders [P] Ltd Vs. The Dy. C.I.T Flat. No. 4, R.R. Apartments Central Circle -14 3, 4 Manglapuri, Mehrauli New Delhi New Delhi PAN : AAKCS 2489 J (Applicant) (Respondent) Appellant by : Ms. Monika Aggarwal, Adv Department By : Shri H.K. Choudhary, CIT- DR Date of Hearing : 16.08.2023 Date of Pronouncement : 18.08.2023 ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- This appeal by the assessee is preferred against the order of the ld. CIT(A) – 26, Delhi dated 30.01.2020 pertaining to Assessment Year 2008-09. 2 2. The sum and substance of grievance of the assessee is that the ld. CIT(A) erred in upholding the penalty of Rs. 27.20 lakhs levied by the Assessing Officer u/s 271AAA of the Income-tax Act, 1961 [the Act, for short]. 3. At the very outset, the ld. counsel for the assessee pointed out that the assessment order has been annulled by this Tribunal in a bunch of 111 appeals in which the appeal of the assessee is at Sl. No. 66 in ITA No. 1288/DEL/2018. It is the say of the ld. counsel for the assessee that since the assessment order has been annulled, penalty so levied does not have any legs to stand. 4. The ld. DR strongly contested this submission of the ld. counsel for the assessee and vehemently stated that even if the assessment order was annulled, penalty is leviable u/s 271AAA of the Act. 5. Though the ld. DR fairly conceded that this Tribunal has annulled the impugned assessment order. 3 6. We have carefully considered the rival contentions and have perused the orders of the authorities below. We have also gone through impugned order of the co-ordinate bench by which it decided 111 appeals alongwith the appeal of the assessee at Sl. No. 66 in ITA No. 1288/DEL/2018. The relevant findings read as under: “38. From the above chart, it can be seen that investment of the share applicants/subscribers have been accepted in their respective assessment orders by same Assessing Officer who has sent proposal to the Additional CIT for making addition in the hands of the assessee. This clearly shows that the Additional CIT did not even care to ask the officer when he has accepted the investment in the hands of the subscribers, then why he is proposing addition in the hands of the assessees. Since, as mentioned elsewhere, approval was completely devoid of any application of mind, these facts got completely ignored by the approving authority. 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. 4 5. Since the foundation has been removed by the coordinate bench of the Tribunal by annulling the relevant assessment order, therefore, the super structure including the penalty order u/s 271AAA of the Act has to fall. Accordingly, grounds of assessee are allowed and the assessing officer is directed to delete the impugned penalty” 7. Respectfully following the above, the grounds of assessee are allowed. 8. In the result, the appeal of the assessee in ITA No. 1464/DEL/2018 is allowed. The order is pronounced in the open court on 18.08.2023. Sd/- Sd/- [YOGESH KUMAR U.S] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18 th August, 2023. VL/ 5 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Date of dictation Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr.PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr.PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order