Cement Corporation of India Ltd., New Delhi V. DCIT, New Delhi

ITA 4043/DEL/2016

AI Insights

The case involves M/s. Cement Corporation of India Ltd., the appellant, contesting a penalty imposed by the Deputy Commissioner of Income Tax (DCIT), Circle 5(2), New Delhi, for the assessment year 2007-08. The penalty was levied under section 271(1)(c) of the Income Tax Act, 1961, following certain quantum additions/disallowances made by the Assessing Officer. However, these additions/disallowances were later set aside and restored back to the Assessing Officer's file by the Tribunal in a separate order dated 23.12.2016. The appellant argued that since the foundational assessment was under reconsideration, the penalty should also be re-evaluated. The Tribunal agreed with this perspective, leading to the setting aside of the penalty.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113188 (ITAT-DELHI)
• Duration Of Justice: 7 year(s) 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 22-08-2023
• Assessment Year: 2007-2008
• Appeal Filed On: 14-07-2016
• Other Referred Cases: ITA No. 1645/Del/2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

I.T.A. No. 4043/Del/2016 1 IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH “B” : DELHI ] BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER A N D SHRI M. BALAGANESH, ACCOUNTANT MEMBER आ.अ.सं./I.T.A No.4043/Del/2016 िनधाᭅरणवषᭅ/Assessment Year: 2007-08 M/s. Cement Corporation of India Ltd., Core-5, Scope Complex, 7 - Lodhi Road, New Delhi – 110 003. बनाम Vs. DCIT, Circle : 5 (2), New Delhi. PAN No. AAACC0949B अपीलाथᱮ /Appellant ᮧ᭜यथᱮ/Respondent िनधाᭅᳯरतीकᳱओरसे /Assessee by : Shri Ajay Wadhwa, Adv.; & Ms. Ragini Handa, Adv. राज᭭वकᳱओरसे / Department by : Shri T. James Singson, [CIT] – D. R.; सुनवाईकᳱतारीख/ Date of hearing : 23/08/2023 उ᳃ोषणाकᳱतारीख/Pronouncement on : 17/10/2023 आदेश /O R D E R PER C. N. PRASAD, J. M. : 1. This appeal is filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals)-2 [hereinafter referred to I.T.A. No. 4043/Del/2016 2 CIT (Appeals)] New Delhi, dated 31.03.2016 for assessment year 2007-08 in confirming the penalty levied under section 271(1)(c) of the Income Tax Act, 1961 (the Act). 2. The ld. Counsel for the assessee, at the outset, submits that the quantum addition/disallowance made by the Assessing Officer while completing the assessment has been set aside and restored back to the file of the Assessing Officer by the Tribunal by order dated 23.12.2016 in ITA. No. 1645/Del/2013 and, therefore, since the quantum addition/disallowance has been restored to the file of the Assessing Officer the penalty levied by the Assessing Officer based on such addition/disallowance has no legs to stand. 3. On hearing the rival submissions and perusing the order of the Tribunal, we notice that the quantum addition/disallowance made in the assessment order for the assessment year 2007-08 has been restored to the file of the Assessing Officer. In the circumstances the penalty levied based on the addition/disallowance made in the assessment order will not survive. Hence, the penalty order passed under section 271(1)(c) is set aside and grounds of appeal of the assessee is allowed. 4. In the result appeal of the assessee is allowed. Order pronounced in the open court on : 17/10/2023. Sd/- Sd/- ( M. BALAGANESH ) ( C. N. PRASAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 17/10/2023. I.T.A. No. 4043/Del/2016 3 *MEHTA* Copy forwarded to :- 1. Appellant; 2. Respondent; 3. CIT 4. CIT (Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, New Delhi. Date of dictation 11.10.2023 Date on which the typed draft is placed before the dictating member 12.10.2023 Date on which the typed draft is placed before the other member 17.10.2023 Date on which the approved draft comes to the Sr. PS/ PS 17.10.2023 Date on which the fair order is placed before the dictating member for pronouncement 17.10.2023 Date on which the fair order comes back to the Sr. PS/ PS 17.10.2023 Date on which the final order is uploaded on the website of ITAT 17.10.2023 Date on which the file goes to the Bench Clerk 17.10.2023 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