Rajnish Talwar, New Delhi V. ACIT, Central Circle-4, New Delhi

ITA 5727/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 2771 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2012-2013
• Appeal Filed On: 30-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.As. No.5723 & 5724/DEL/2019 Assessment Years 2014-15 & 2015-16 Ratna Talwar, C/o Kapil Goel, Adv, F-26/124 Sector 7 Rohini, Delhi. Vs. ACIT, Central Circle-4, New Delhi. TAN/PAN: ACGPT9955M (Appellant) (Respondent) I.T.As. No. 5725, 5726 & 5727/DEL/2019 Assessment Years 2010-11, 2011-12, 2012-13 Rajnish Talwar, C/o Kapil Goel, Adv, F-26/124 Sector 7 Rohini, Delhi. Vs. ACIT, Central Circle-4, New Delhi. TAN/PAN: AAZPT8964F (Appellant) (Respondent) Appellant by: Shri Kapil Goel, Adv. Respondent by: Shri T. Kipgen, CIT-DR Date of hearing: 09 06 2022 Date of pronouncement: 27 06 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: Th e cap tio n ed app eals h av e b een fi led b y th e Assessees ag ain st th e co n so li d ated o rd er o f th e Co mmiss io n er o f In co me Tax (Ap p eals)-XXIII, New Delh i (‘CIT(A)’ in sh o rt) d ated 0 7 .06 .2 019 in rel at io n to p en alty p ro ceed in g s in i ti at ed u n d er Sect io n 2 7 1 (1 )(c) o f th e In co me T ax Act, 1 9 6 1 (th e Act) co ncern in g AYs I.T.As. No. 5723, 5724, 5725, 5726 & 5727/DEL/2019 2 2 0 10 -11 , 2 0 1 1-1 2 , 2 0 12 -13 , 2 0 1 3-1 4 an d 2 0 14 -15 . 2 . As p er its g ro u nd s o f ap p eal, th e asse ssee h as ch allen g e d th e imp o si t io n o f p en alty u n d er Secti o n 27 1(1 )(c) amo u ntin g to Rs.2 0 ,0 8 ,1 5 3 /- in Assessmen t Year 2 0 1 4 -1 5 and v aried amo u n ts in o th er cap t io n ed ap p eals fo r d i fferen t assess men t y ears. 3 . Wh en th e matt er was cal led fo r h earin g , th e ld . co u n sel referred to th e d e cis io n ren d ered by th e Co -o rd in ate Ben ch in b u n ch o f gro up cases in clu d in g th e cap tio n ed assessee s p assed in q u an tu m p ro ceed ing s v id e o rd er d ated 1 9 .01 .2 02 1 . The referen ce mad e to th e q u an tu m p ro ceed in g s d is p o sed o f are tabu la ted h erein : I T A N o . A . Y . N a m e o f t h e A s s e s s e e N a m e o f t h e r e s p o n d e n t 1 6 2 5 / D e l / 2 0 1 9 2 0 1 4 - 1 5 R a t n a T a l w a r , C / o K a p i l G o e l , A d v . , F - 2 6 / 1 2 4 , S e c t o r - 7 , R o h i n i , D e l h i . A C I T , C e n t r a l C i r c l e - 4 , N e w D e l h i . 1 6 2 6 / D e l / 2 0 1 9 2 0 1 5 - 1 6 R a t n a T a l w a r , C / o K a p i l G o e l , A d v . , F - 2 6 / 1 2 4 , S e c t o r - 7 , R o h i n i , D e l h i . A C I T , C e n t r a l C i r c l e - 4 , N e w D e l h i . 1 6 1 1 / D e l / 2 0 1 9 2 0 1 0 - 1 1 R a j n i s h T a l w a r , C / o K a p i l G o e l , A d v . , F - 2 6 / 1 2 4 , S e c t o r - 7 , R o h i n i , D e l h i . A C I T , C e n t r a l C i r c l e - 4 , N e w D e l h i . 1 6 1 2 / D e l / 2 0 1 9 2 0 1 1 - 1 2 R a j n i s h T a l w a r , C / o K a p i l G o e l , A d v . , F - 2 6 / 1 2 4 , S e c t o r - 7 , R o h i n i , D e l h i . A C I T , C e n t r a l C i r c l e - 4 , N e w D e l h i . 1 6 1 3 / D e l / 2 0 1 9 2 0 1 2 - 1 3 R a n i s h T a l w a r , C / o K a p i l G o e l , A d v . , F - 2 6 / 1 2 4 , S e c t o r - 7 , R o h i n i , D e l h i . A C I T , C e n t r a l C i r c l e - 4 , N e w D e l h i . I.T.As. No. 5723, 5724, 5725, 5726 & 5727/DEL/2019 3 4 . Th e ld . co u n sel p o in ted o u t th at th e p en alty h as b een imp o sed b y th e CIT(A) in ex ercise of p o wers v ested und er Sectio n 2 5 0 (6 ) r.w. Sect io n 2 7 1 (1 )(c) o f th e Act o n en h an ceme n ts mad e b y CIT(A) b y way o f d eemed d iv id en d u n d er Sectio n 2 (22)(e) o f th e Act. In th is co n te x t, i t was p o in ted o u t th at th e en h an cemen ts lack s v al id an d lawfu l b asis an d su ch en h an cemen t act io n is with o u t an y au th o rity o f l aw. It was t h ereu p on po inted ou t th at th e assess men t i tse l f h as b een q u ash ed an d ren d ered n on -est b y th e ITAT and th erefo re en h an cemen ts mad e o n th e no n -est assessmen t h as lo st i ts v ery fo u nd atio n an d th erefo re n o ad d itio n b y way o f en h an cemen t c an b e d eemed to ex is t in th e q u an tu m pro ceed in g s. It was th u s co n ten d ed th at wh en the assess men t i tsel f h as b een q u ash ed as a n on -est o n th e g ro u nd s o f in v alid ap p roval g ran ted u n d er Sectio n 1 5 3D o f th e Act , th e CIT(A) is in cap ac i tat ed in l aw to mak e en h an cemen t o f an y so rt on su ch no n -est assessmen t . Th e ld . co u n sel th u s su b mi tt ed th a t th e p en a lty i mp o sed o n en h an cemen ts carr ied o u t b y th e imp u gn ed first ap p el lat e o rd er d eserv es to b e q u a sh ed . 5 . Th e ld . DR fo r th e Rev en u e d id n o t reb u t an y o f th e o b serv atio n s mad e o n b eh alf o f th e as sessee . 6 . On con sid eratio n o f riv al su b miss io n s an d o n p eru sal o f th e case reco rd s, we n o tice th a t th e q u an tu m ap p ea ls in rela tio n to th e cap tio n ed ap p eals h av e b een ad ju d ica ted in fav o u r of th e asse ssees an d th e assessmen t o rd ers itsel f h av e b een q u ash ed . Th is b ein g so , th e p en alty i mp o sed in th e en h an cemen t p ro ceed in g s o n th e b asis o f n o n est qu an tu m p ro ceed in g s wo u ld au to mati ca lly ce ase to ex ist o win g to lack of fo u n d atio n . Th e p en alty i mp o se d in th e en h an cemen t p ro ceed in g s in th ese p ecu li ar fa cts is th u s ren d ered u n su stain ab le in l a w. I.T.As. No. 5723, 5724, 5725, 5726 & 5727/DEL/2019 4 7 . In th e resu l t, a ll th e ap p eals o f th e as sessees are al lo wed . Order pronounced in the open Court on 27/06/2022. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 27/06/2022 Prabhat