RAMAN GUPTA,DELHI V. DCIT CENTRAL CIRCLE-17, DELHI

ITA 3240/DEL/2023

AI Insights

The case involves an appeal by Raman Gupta against the penalty imposed by the Deputy Commissioner of Income Tax under section 271AAB(1A) of the Income Tax Act, 1961, following certain additions made during the assessment proceedings for the year 2014-15. The additions included unexplained jewellery, cash, and investment in property. The Tribunal had previously deleted some of these additions and restored others for re-evaluation. The main contention in the appeal was whether the penalty could stand after the deletions and restorations made by the Tribunal in the quantum proceedings. The Tribunal concluded that since the substratum for the penalty had eroded due to the deletions and the restoration of the cash addition for re-assessment, the penalty was unsustainable and thus quashed.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298825 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2014-2015
• Other Referred Cases: ITA No. 02/Del/2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARPREET KAUR HANSRA
• Assessee Lawyers: R.K KAPOOR; CHARTERED ACCOUNTANT
• Keywords: Condonation of delay; Unexplained investment

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “एफ”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं ŵी अवधेश क ुमार िमŵा, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER आअसं.3240/िदʟी/2023(िन.व. 2014-15) ITA No.3240/DEL/2023(A.Y.2014-15) Raman Gupta, 138-139, Main Road, Ghazipur, Delhi 110096 PAN:ABAPG-1217-G ...... अपीलाथᱮ/Appellant बनाम Vs. Deputy Commissioner of Income Tax, NCC DIT(S), Jhandewalan Extension, Delhi 110055 ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : Shri R.K Kapoor, Chartered Accountant ŮितवादीȪारा/Respondent by : Ms. Harpreet Kaur Hansra, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 17/02/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 17/02/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-27, New Delhi (hereinafter referred to as 'the CIT(A)') dated 20.07.2023, for assessment year 2014-15. 2. The appeal is time barred by 46 days. The assessee has filed an application seeking condonation of delay in filing of appeal. After perusal of the same, we are satisfied that delay in filing of appeal is not intentional, but was for the reasons 2 ITA NO.3240/DEL/2023 (A.Y.2014-15) stated in application which appears to be bonafide. The delay in filing of appeal is condoned and appeal is admitted for hearing. 2. Shri R.K Kapoor, appearing on behalf of the assessee submitted that the assessee is in appeal against confirmation of penalty levied u/s. 271AAB(1A) of the Income Tax Act,1961(hereinafter referred to as ‘the Act’). Referring to penalty order dated 25.03.2022. The ld. AR of the assessee submits that the addition was made by the Assessing Officer (AO) on following grounds:- SI. No Addition on the ground of Amout (Rs.) 1 Addition on account of jewellery found in possession of the assessee 9,05,640/- 2 Addition on account of unexplained cash 16,66,730/- 3 Addition on account of unexplained investment towards purchase of property 1,00,00,000/- Total 1,25,72,370/- 3. The AO has levied u/s. 271AAB(1A) of the Act in respect of above additions. The assessee challenged additions on merits before the Tribunal in ITA No. 02/Del/2020. The Tribunal vide order dated 27.06.2024 deleted addition in respect of jewelry found in possession of the assessee and unexplained investment towards purchase of property (i.e. additions at Sl No. 1 & 3 in table above). In so far addition on account of unexplained cash the Tribunal has restored the issue back to the AO for denovo adjudication. The ld. AR of the assessee placed on record copy of the Tribunal order dated 27.06.2024 (supra) in quantum proceedings for AY 2014-15. He submitted that once addition has been deleted penalty u/s. 271AAB(1A) of the Act does not survive. 4. Ms. Harpreet Kaur Hansra, representing the department vehemently defended the impugned order. However, she fairly stated that the Tribunal in ITA 3 ITA NO.3240/DEL/2023 (A.Y.2014-15) No. 02/Del/2020 (supra) has deleted addition in so far as jewellery found in possession of the assessee and unexplained investment towards purchase of property and has restored the issue in respect of addition on account unexplained cash. 5. Both sides heard, orders of the authorities below examined. The AO has levied penalty u/s. 271AAB(1A) of the Act in respect of the additions made in assessment proceedings. We find that the coordinate Bench in assessee’s appeal in quantum proceedings in ITA No. 02/Del/2020 (supra) has deleted addition in toto on account of jewellery found in possession of the assessee and addition on account of unexplained investment towards purchase of property. In so far as addition on account of unexplained cash, the issue has been restored back to the AO. Thus, as of now no addition is pending against the assessee for AY 2014-15. Once the substratum for levy of penalty has eroded, penalty does not survive. In light of undisputed facts, penalty levied u/s. 271AAB(1A) of the Act is unsustainable. We hold accordingly. 6. In the result, impugned order is quashed and appeal of the assessee is allowed. Order pronounced in the open court on Monday the 17th day of February, 2025. Sd/- Sd/- (AVDHESH KUMAR MISHRA) (VIKAS AWASTHY) लेखाकार सद᭭य/ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी / Delhi, ᳰदनांक/Dated 17/02/2025 NV/- 4 ITA NO.3240/DEL/2023 (A.Y.2014-15) ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध.,िदʟी/DR, ITAT,Delhi 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, Delhi "