SEEMA SALWAHAN,AMBALA CANTT. V. INCOME TAX OFFICER, WARD-4, AMBALA CANTT

ITA 762/CHANDI/2024

AI Insights

The case involves Seema Salwahan, the appellant, who appealed against the penalty imposed by the Assessing Officer (AO) under Section 270A of the Income Tax Act, which was confirmed by the CIT(Appeals). The penalty was based on an alleged underreporting of income due to a disallowed claim under Section 54F. However, the quantum addition which led to the penalty was later deleted by the CIT(Appeals) in a separate appeal. The Tribunal, considering the deletion of the quantum addition, found no basis for the penalty and allowed the appeal, deleting the penalty.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469849 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR
• Assessee Lawyers: ASHWANI KUMAR

Judgement Text

"आयकर अपील य अ\u000bधकरण,च\u0010डीगढ़ \u0014यायपीठ, च\u0010डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGRH BENCH, ‘SMC’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT आयकर अपील सं./ ITA No. 762/CHD/2024 \rनधा\u0011रण वष\u0011 / Assessment Year: 2018-19 Seema Salwahan, 5355/6, Punjabi Mohalla, Ambala Cantt. Vs The ITO, Ward – 4, Ambala Cantt. \u0016थायी लेखा सं./PAN NO: ACGPS7683D अपीलाथ\u001a/Appellant \u001b\u001cयथ\u001a/Respondent Assessee by : Shri Ashwani Kumar, CA Revenue by : Dr. Ranjit Kaur, Addl. CIT Sr.DR Date of Hearing : 28.01.2025 Date of Pronouncement : 20.02.2025 PHYSICAL HEARING O R D E R The assessee is in appeal before the Tribunal against the order of ld. CIT(Appeals) dated 28.05.2024 passed for assessment year 2018-19. The solitary grievance of the assessee is that ld. CIT(A) has erred in confirming the penalty imposed by the AO under Section 270A of the Income Tax Act. 2. The brief facts of the case are that assessee has filed her return of income declaring income of Rs.95,530/-. The case of the assessee was selected for scrutiny assessment and ITA No.762/CHD/2024 A.Y.2018-19 2 assessment order was passed on 09.04.2019 under Section 143(3) of the Income Tax Act. The ld. AO has disallowed the claim of assessee under Section 54F amounting to Rs.28,92,978/-. The AO has initiated a penalty under Section 270A of the Act. He imposed penalty of Rs.2,87,066/- being 50% of the tax on under reported income. 3. The appeal to the ld. CIT(A) did not bring any relief to the assessee because it was dismissed for the reason that there is a delay in filing the appeal. 4. The ld. Counsel for the assessee, at the very outset submitted that the alleged quantum addition has been deleted by the CIT(A) vide her order dated 21.04.2024, hence, there are no legs to stand for this penalty. He further submitted that against the assessment order, appeal was instituted on 20.11.2023. The penalty was imposed on 05.05.2022 and this appeal was also instituted on 15.12.2023. In other words, both the appeals were instituted simultaneously but the ld. CIT(A) on quantum side condoned the delay in filing the appeal, if any and decided it on merits. On the other hand, the ld. CIT(A) in penalty proceedings ITA No.762/CHD/2024 A.Y.2018-19 3 did not condone the delay of 709 days and confirmed the levy of penalty. 5. On due consideration of the above facts and circumstances and looking to the order of the CIT(A) in quantum proceeding, I am satisfied that assessee does not deserves to be visited with penalty because there is no foundation for calculating the penalty, the additions on which penalty has been computed stands deleted. In other words, there cannot be any charge that assessee has under reported the income because addition on alleged under reported income has already been deleted and attained finality. Therefore, I condone the delay in filing the appeal before the CIT(A) and entertain the issue on merit. 6. In view of the quantum order of the CIT(A), the penalty is not sustainable, hence deleted. 7. In the result, the appeal of the assessee is allowed. Order pronounced on 20.02.2025. Sd/- (RAJPAL YADAV) VICE PRESIDENT “Poonam” ITA No.762/CHD/2024 A.Y.2018-19 4 आदेश क\u0002 \u0003ितिलिप अ\tेिषत/ Copy of the order forwarded to : 1. अपीलाथ\u000f/ The Appellant 2. \u0003\u0010यथ\u000f/ The Respondent 3. आयकर आयु\u0014/ CIT 4. िवभागीय \u0003ितिनिध, आयकर अपीलीय आिधकरण, च\u0018डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड\u001c फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "