Ratroi Maa Trading P.Ltd, Delhi V. ITO, Wazrd-21(1), New Delhi

ITA 1778/DEL/2019

AI Insights

The case involves Ratroi Maa Trading Private Ltd., the appellant, contesting a penalty order under section 271(1)(c) of the Income-tax Act, 1961, imposed by the Commissioner of Income-tax (Appeals)-XXV, New Delhi. The penalty was based on an enhanced income addition of Rs. 3,27,45,060 for the assessment year 2009-10, which led to a penalty of Rs. 1,01,18,224. However, in a related quantum appeal (ITA no. 7489/Del/2018), the Tribunal had earlier deleted this addition, which was the sole basis for the penalty. Consequently, the Tribunal in this case decided that the penalty could not stand and thus allowed the appeal, deleting the penalty.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 108540 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 02-08-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 04-03-2019
• Other Referred Cases: ITA no. 7489/Del/2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c)

Judgement Text

1 ITA No. 1778/Del/2019 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”: NEW DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA No. 1778/DEL/2019 Assessment Year: 2009-10 Ratroi Maa Trading Private Ltd., M-98, 2 nd Floor, Jagat Ram Park, Laxmi Nagar, Delhi-110092. PAN- AAECR0612A Vs Income-tax Officer, Ward-21(1), New Delhi. APPELLANT RESPONDENT Assessee represented by Shri Shil Gupta, CA Department represented by Shri Vivek Vardhan, Sr. DR Date of hearing 03.08.2023 Date of pronouncement 07.08.2023 O R D E R PER KUL BHARAT, JM: This appeal, by the assessee, is directed against the penalty order u/s 271(1)(c) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), passed 2 ITA No. 1778/Del/2019 by the learned Commissioner of Income-tax (Appeals)-XXV, New Delhi, dated 02.01.2019, pertaining to the assessment year 2009-10. The solitary effective ground raised by the assessee is as under: “That on the basis of facts and in the circumstances of the case and in law, Ld. CIT(A) erred in making addition by enhance income of Rs. 3,27,45,060/- and thereafter imposed penalty amounting to Rs. 1,01,18,224/- (@ 100%) under section 271(1)(c) of the Income-tax Act, 1961.” 2. At the outset learned counsel for the assessee challenging the impugned penalty order submitted that in quantum proceedings the Coordinate Bench of this Tribunal in ITA no. 7489/Del/2018 vide order dated 13.06.2023 has deleted the impugned addition, hence no penalty would survive. 3. The learned DR, on the other hand, supported the impugned penalty order. However, he fairly conceded that the Tribunal in quantum appeal being ITA no. 7489/Del/2018 has deleted the addition. 4. We have heard rival submissions and perused the material available on record. Admittedly in quantum proceedings the addition, which was the basis for imposing impugned penalty u/s 271(1)(c) of the Act, has since been deleted by the Coordinate Bench of this Tribunal vide its order dated 13.06.2023 rendered in ITA no. 7489/Del/2018. Therefore, since the very basis for levy of penalty has gone, the 3 ITA No. 1778/Del/2019 impugned penalty levied u/s 271(1)(c) of the Act cannot survive and stands deleted accordingly. Ground of appeal is allowed. 5. Appeal of the assessee is allowed. Order pronounced in open court on 7 th August, 2023. Sd/- Sd/- (DR. B.R.R. KUMAR) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI