ITO, New Delhi V. Sh. Vikas Grover, New Delhi

ITA 2147/DEL/2014

• Counselvise Citation: 214720114 RSA 2014
• Duration Of Justice: 1 year(s) 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 1
• Next Hearing Date: 14-09-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 09-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SARBHJIT KUM

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-I, NEW DELHI BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER ITA NO.2147/DEL/2014 ASSESSMENT YEAR : 2008-09 ITO, WARD 33(3), NEW DELHI. VS VIKAS GROVER, COTTAGE NO.14, WEST PATEL NAGAR, NEW DELHI PAN: AKTPG1762E (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI SARBHJIT KUM AR, SR. DR DATE OF HEARING : 14.09.2015 DATE OF PRONOUNCEMENT : 14.09.2015 ORDER THIS IS AN APPEAL BY THE DEPARTMENT AGAINST THE ORD ER DATED 13.1.2014 OF LD. CIT(A)-XXVI, NEW DELHI. 2. THE ONLY GRIEVANCE OF THE DEPARTMENT IN THIS APP EAL RELATES TO THE DELETION OF PENALTY OF RS.8,13,548/- LEVIED BY THE AO U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREI NAFTER REFERRED TO AS THE ACT). ITA NO.2147/DEL/2014 VIKAS GROVER 2 3. DURING THE COURSE OF HEARING, NOBODY WAS PRESENT ON BEHALF OF THE ASSESSEE, NOR ANY ADJOURNMENT WAS SOU GHT. I, THEREFORE, PROCEEDED EX PARTE QUA THE ASSESSEE AND THE APPEAL IS DECIDED ON MERITS, AFTER HEARING THE LD. DR. 4. IN THE PRESENT CASE, IT IS NOTICED THAT THE AO L EVIED THE PENALTY OF RS.8,13,548/- ON THE BASIS THAT AN ADDIT ION OF RS.24,52,100 WAS MADE. THE LD.CIT(A) DELETED THE S AID PENALTY BY OBSERVING THAT THE ADDITION OF RS.24,52, 100/- WAS DELETED AND AS SUCH THERE REMAINED NO ADDITION, NO PENALTY WAS LEVIABLE. 5. DURING THE COURSE OF HEARING, THE LD. DR COULD N OT CONTROVERT THE FINDINGS GIVEN BY THE LD. CIT(A). I N THAT VIEW OF THE MATTER, I AM OF THE VIEW THAT THE PENALTY LE VIED BY THE AO U/S 271(1)(C) OF THE ACT WAS RIGHTLY DELETED BY THE LD.CIT(A). WHEN THE ADDITION, ON THE BASIS OF WHIC H THE PENALTY IS LEVIED ITSELF IS DELETED, THEN, THE PENA LTY U/S 271(1)(C) DOES NOT SURVIVE AS HAS BEEN HELD BY THE HONBLE SUPREME COURT IN THE CASE OF K.C. BUILDERS AND ANOTHER VS. ACIT REPORTED AT (2004 265 ITR 562 (SC), AS UNDER:- WHERE THE ADDITIONS MADE IN THE ASSESSMENT ORDER O N THE BASIS OF WHICH PENALTY FOR CONCEALMENT IS LEVIED, ARE DELETE D, THERE REMAINS NO BASIS AT ALL FOR LEVYING PENALTY FOR CONCEALMENT AN D, THEREFORE, IN SUCH ITA NO.2147/DEL/2014 VIKAS GROVER 3 A CASE NO PENALTY CAN SURVIVE AND THE PENALTY IS LI ABLE TO BE CANCELLED. ORDINARILY, PENALTY CANNOT STAND IF THE ASSESSMENT ITSELF IS SET ASIDE. 7 . THEREFORE, BY KEEPING IN VIEW THE RATIO LAID DOWN BY THE HON'BLE SUPREME COURT IN THE AFORESAID CASE, I DO NOT SEE A NY MERIT IN THIS APPEAL OF THE DEPARTMENT. 8. IN THE RESULT, THE APPEAL FILED BY THE DEPARTME NT IS DISMISSED. (ORDER PRONOUNCED IN THE COURT ON 14/09/2015) SD/- (N. K. SAINI) ACCOUNTA NT MEMBER DATED: 14/09/2015 DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR