RAM SINGH SAINI,HARYANA V. INCOME TAX OFFICER WARD-4(1), GURGAON, GURGAON

ITA 959/DEL/2024

AI Insights

The case involves an appeal by Ram Singh Saini against the order of the Ld. CIT(Appeals)-NFAC, Delhi, which dismissed his appeal regarding a penalty levied under section 271(1)(c) of the Income Tax Act for the Assessment Year 2010-11. The Tribunal had previously set aside the penalty and directed the cancellation, but the CIT(A) mistakenly believed the Tribunal had restored the appeal to him for a fresh order. The Tribunal clarified that the penalty was already cancelled and the CIT(A)'s recent order was invalid, leading to the quashing of that order and allowing the assessee's appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 43516 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Other Referred Cases: Sunderam Finance Ltd., Sahara India Life Insurance Co. Ltd.
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAM KRISHAN MEENA
• Assessee Lawyers: SOMIL AGGARWAL
• Keywords: Set aside
• Section: 271(1)(c); 274

Judgement Text

"I.T.A.No.959/Del/2024 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER आ.अ.सं/.I.T.A No.959/Del/2024 िनधा\tरणवष\t/Assessment Year: 2010-11 Ram Singh Saini Ucha Gaon, Saini Mohalla Ballabgarh, Haryana, Ballabgarh. बनाम Vs. Income Tax Officer Ward 4(1), Gurgaon, Haryana. PAN No.CNEPS9277E अपीलाथ\u0012 Appellant \u0014\u0015यथ\u0012/Respondent िनधा\u0007\bरतीक\rओरसे /Assessee by Shri Somil Aggarwal, Adv. and Shri Deepesh Garg, Adv. राज\u0012वक\rओरसे /Revenue by Shri Ram Krishan Meena, Sr. DR सुनवाईक\rतारीख/ Date of hearing: 07.08.2024 उ\u0018ोषणाक\rतारीख/Pronouncement on 19.02.2025 आदेश /O R D E R This appeal is filed by the assessee against the order of the Ld. CIT(Appeals)-NFAC, Delhi dated 05.02.2024 for the AY 2010-11. 2. Ld. Counsel for the assessee, at the outset, submits that the Ld. CIT(Appeals) wrongly passed order and the appeal filed by the assessee is said to have been dismissed even though the Tribunal by order dated 2.3.2021 in ITA No.6167/Del/2019 deleted the penalty I.T.A.No.959/Del/2024 2 levied u/s 271(1)(c) of the Act by setting aside the order of the Ld. CIT(A). Copies of the order of the Tribunal are placed on record. 3. Heard rival contentions, perused the orders of the authorities below. On perusal of the order of the Tribunal in ITA No.6167/Del/2019 dated 2.3.2021 for the AY 2010-11 the Tribunal deleted the penalty levied u/s 271(1)(c) of the Act observing as under: - “The reliance of the Ld. DR in respect of Sunderam Finance Ltd. (supra) cannot be taken into account in toto in the present case as the jurisdictional High Court in case of Sahara India Life Insurance Co. Ltd. (supra) has clearly set out the necessity of the actual provisions for which the penalty is issued by the Revenue. Thus, notice u/s 271(1)(c) r.w.s. 274 of the Act itself is bad in law. We, therefore, set aside the order of the CIT(A) and direct the Assessing Officer to cancel the penalty so levied.” 4. As could be seen from the above observations of the Tribunal the order of the Ld. CIT(Appeals) was set aside and directed the Assessing Officer to cancel the penalty levied. 5. I am of the view that the Ld. CIT(A) was under the mistaken impression that the order of the Ld. CIT(A) was set aside by the Tribunal and restored appeal to him for passing a fresh order, but that is not the case. The Tribunal deleted the penalty levied u/s 271(1)(c) of the Act for the AY 2010-11 by setting aside the order of I.T.A.No.959/Del/2024 3 the Ld. CIT(A). Therefore, the impugned order passed by the Ld. CIT(A) dated 5.2.2024 for AY 2010-11 was passed without there being any list before him. Thus, such an order is nonest and the same is quashed. Grounds raised by the assessee are allowed. 6. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 19/02/2025 Sd/- (C.N. PRASAD) JUDICIAL MEMBER Dated: 19.02.2025 *Kavita Arora, Sr. P.S. Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. By order Assistant Registrar, ITAT: Delhi Benches-Delhi "