Case Number: ITA 981/DEL/2021
Appellant: ITO, Ward-23(1), New Delhi
Respondent: Shalimar Town Planners Pvt. Ltd., New Delhi
Assessment Year: 2008-09
Result: 2008-09
Case Filed on: 2021-08-16
Order Type: Final Tribunal Order
Date of Order: 2021-09-24
Pronounced on: 2021-09-24
This case involves an appeal filed by the Income Tax Officer (ITO), Ward-23(1), New Delhi (hereinafter referred to as ‘the Appellant’), against the order dated 09.04.2021 passed by the Commissioner of Income Tax (Appeals)-XXX, New Delhi [CIT(A)] in relation to penalty proceedings under Section 271(1)(c) of the Income Tax Act, 1961 for the assessment year 2008-09. The appeal was filed in the Income Tax Appellate Tribunal (ITAT), Delhi Bench “A”.
The Respondent in this case is Shalimar Town Planners Pvt. Ltd., a company based in New Delhi. The dispute arose from the penalty of Rs. 84,46,338 levied under Section 271(1)(c) of the Income Tax Act. The penalty was imposed by the Assessing Officer (AO) on the grounds of alleged concealment of income and furnishing inaccurate particulars of income.
The Respondent appealed against the penalty order before the CIT(A), who deleted the penalty. The CIT(A)’s decision was based on the fact that the ITAT had previously quashed the assessment order passed by the AO under Section 153C/143(3) as invalid. The Appellant (ITO) then filed this appeal challenging the CIT(A)’s order.
The Appellant raised the following grounds of appeal:
The Tribunal, comprising Shri G.S. Pannu (President) and Shri Amit Shukla (Judicial Member), observed that the CIT(A) had deleted the penalty based on the ITAT’s decision to quash the assessment order passed by the AO. The Tribunal noted that in the quantum proceedings, the matter had been decided in favor of the Respondent by the ITAT, which had quashed the assessment order dated 30.06.2020 in ITA Nos. 6307/Del/2013 and 6345/Del/2013 for the assessment year 2008-09.
The Tribunal stated that once the assessment order itself had been quashed, the penalty arising out of such quantum of assessment also deserved to be quashed. The Tribunal emphasized that without a valid assessment order, the basis for imposing the penalty under Section 271(1)(c) did not exist.
The Tribunal upheld the order of the CIT(A) and dismissed the appeal filed by the Revenue. The Tribunal concluded that the penalty levied under Section 271(1)(c) was unsustainable as it was based on an assessment order that had been quashed.
Order: The appeal of the Revenue is dismissed.
Order pronounced in the open court on 24.09.2021.
-Sd/- (G.S. PANNU, PRESIDENT) -Sd/- (AMIT SHUKLA, JUDICIAL MEMBER)
Date:- 24.09.2021
Copy forwarded to:
Assistant Registrar
ITAT, New Delhi
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