M/s. Neeta Gupta, New Delhi V. ITO, New Delhi

ITA 3479/DEL/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97977 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 03-12-2015
• Assessment Year: 2002-2003
• Appeal Filed On: 01-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F , NEW DELHI BEFORE SH. N. K. SAINI, AM AND SMT. BEENA PILLAI, JM ITA NO. 3479 /DEL/2015 : ASSTT. YEAR : 200 2 - 0 3 MS. NEETA GUPTA, 75/5571 , RAGHER PURA, KAROL BAGH, NEW DELHI VS ITO, WARD - 33(4), NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. A A KPG1073D ASSESSEE BY : SH. P. C. YADAV , ADV. REVENUE BY : DATE OF HEARING : 03 .12 .2015 DATE OF PRONOUNCEMENT : 08 .12 .2015 ORDER PER N. K. SAINI, AM: THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 24.03.2015 OF LD. CIT - X V II , NEW DELHI . 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEAL RELATES TO THE CONFIRMATION OF PENALTY OF RS. 4,22,770 / - LEVIED BY THE AO U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). DURING THE COURSE OF HEARING THE LD. COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET STATED THAT THE PENALTY U/S 271(1)(C) OF THE ACT WAS LEVIED IN THIS CASE ON THE BASIS OF THE ADDITIONS MADE BY THE AO WHILE FRAMING THE ASSESSMENT VIDE ORDER DATED 20.12.2007, WHICH WAS CONFIRMED BY THE LD. CIT(A) VIDE ORDER DATED 31.10.2012. THEREAFTER, THE ITA NO . 3479 /DEL /2015 NEETA GUPT A 2 AO ISSUED THE NOTICE DATED 26.12.2012 TO THE ASSESSEE TO SHOW CAUSE AS T O WHY THE PENALTY U/S 271(1)(C) OF THE ACT MAY NOT BE LEVIED. THE AO DID NOT ACCEPT THE SUBMISSION OF THE ASSESSEE THAT THE ISSUE MAY BE KEPT IN ABEYANCE TILL THE DISPOSAL OF APPEAL OF THE ITAT AND LEVIED THE PENALTY U/S 271(1)(C) OF THE ACT AMOUNTING TO R S. 4,22,770/ - . THE SAID PENALTY WAS SUSTAINED BY THE LD. CIT(A), HOWEVER, ON THE APPEAL OF THE ASSESSEE ON QUANTUM ADDITION IN ITA NO. 239/DEL/2013, THE ITAT DELHI BENCH, SMC - 1, NEW DELHI VIDE ORDER DATED 30.11.2015 HELD THAT THE REOPENING WAS BAD IN LAW A ND ACCORDINGLY THE ASSESSMENT ORDER DATED 20.12.2007 WAS SET ASIDE AND AS SUCH THERE IS NO ADDITION SURVIVES ON THE BASIS OF WHICH THE IMPUGNED PENALTY WAS LEVIED. 3. IN HIS RIVAL SUBMISSIONS THE LD. DR SUPPORTED THE ORDER OF THE AUTHORITIES BELOW. 4 . WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THE PRESENT CASE, IT IS NOTICED THAT THE ASSESSMENT ORDER DATED 20.12.2007 WHICH IS THE BASIS FOR LEVYING THE IMPUGNED PENALTY U/S 271(1)(C) OF THE ACT HAS BEEN HELD AS BAD IN LAW VIDE ORDER DATED 30.11.2015 IN ITA NO. 239/DEL/2013 BY THE ITAT DELHI BENCH, SMC - 1, NEW DELHI. THEREFORE, THE IMPUGNED PENALTY DOES NOT SURVIVE. IN THAT VIEW OF THE MATTER THE IMPUGNED ORDER IS SET ASIDE ITA NO . 3479 /DEL /2015 NEETA GUPT A 3 AND THE PENALTY AMOUNTI NG TO RS. 4,22,770/ - LEVIED BY THE AO AND SUSTAINED BY THE LD. CIT(A) IS DELETED. 5 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED . ( ORDER PRON OUNCED IN THE COURT ON 08 /12 /2015 ) SD/ - SD/ - (BEENA PILLAI ) (N. K. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 08 /12/2015 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR