ACIT, Circle, Karnal V. Mehta Construction Company, New Delhi

ITA 8920/DEL/2019

AI Insights

The case involves an appeal by the Revenue against the order of the CIT(A), Karnal, which pertained to the Assessment Year 2012-13. The primary issue was the deletion of a penalty of Rs. 2,10,33,606/- by the CIT(A), which had been originally levied by the Assessing Officer under section 271(1)(c) of the Income-tax Act, 1961. The penalty was based on an addition made to the assessee's income due to low profit, which was subsequently contested and led to a Tribunal decision that removed this addition. The Tribunal's decision effectively nullified the basis for the penalty concerning this amount. However, the Tribunal allowed the Assessing Officer to reassess the penalty related to a separate addition of Rs. 19,96,324/- after due process.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 300927 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2023
• Appeal Filed By: Department
• Order Result: PartlyAllowed
• Bench Allotted: E
• Next Hearing Date: 05-07-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 14-11-2019
• Other Referred Cases: ITA No. 6724/DEL/2016
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 271(1)(c); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘E’ BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No. 8920/DEL/2019 [A.Y. 2012-13] The A.C.I.T Vs. Mehta Construction Circle, Karnal Company, 108, Sector – 14, U. E. Karnal, Karnal, Haryana PAN: AAHFM 3503 D (Applicant) (Respondent) Assessee By : --None-- Department By : Shri M. K. Pandey, Sr. DR Date of Hearing : 06.07.2023 Date of Pronouncement : 10.07.2023 ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- This appeal by the Revenue is preferred against the order dated 02.09.2019 by the CIT(A), Karnal pertaining to Assessment Year 2012- 13. 2 2. The solitary grievance of the Revenue is that the ld. CIT(A) erred in deleting the penalty of Rs. 2,10,33,606/- levied by the Assessing Officer u/s 271(1)(c) of the Income-tax Act, 1961 [the Act, for short]. 3. None appeared on behalf of the assessee in spite of several notices. We decided to proceed exparte. 4. The roots for levy of penalty lie in the assessment order dated 04.03.2015 framed u/s 143(3) of the Act wherein the returned income of the assessee at Rs. 93,47,710/- was assessed at Rs. 3,23,77,640/- after making addition of Rs. 2,10,33,606/- and Rs. 19,96,324/-. 5. Addition on account of low profit travelled upto the Tribunal and the Tribunal vide order dated 23.10.2018 in ITA No. 6724/DEL/2016 has deleted the addition on account of low profit which means that penalty to the extent of addition of Rs. 2,10,33,606/- does not hold any water and has no legs to stand. To this extent penalty stands deleted. However, the Assessing Officer is directed to decide the levy of penalty on the balance amount of Rs. 19,96,324/- after affording reasonable opportunity of being heard to the assessee. 3 6. In the result, the appeal of the Revenue in ITA No. 8920/DEL/2019 is party allowed. The order is pronounced in the open court on 10.07.2023. Sd/- Sd/- [ASTHA CHANDRA] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 10 th JULY, 2023. VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi 4 Date of dictation Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr.PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr.PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk 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