Case Number: ITA 1466/DEL/2020
Appellant: Gopal Kumar Goyal, New Delhi
Respondent: DCIT Central Circle-14, New Delhi
Assessment Year: 2008-09
Result: 2008-09
Case Filed On: 2020-08-05
Order Type: Final Tribunal Order
Date of Order: 2023-07-14
Pronounced On: 2023-07-14
Gopal Kumar Goyal, residing in New Delhi, filed an appeal against the order of the CIT(A)-26, New Delhi dated 30.01.2020, contesting the penalty of Rs. 74 lakhs imposed by the Assessing Officer (AO) under Section 271AAA of the Income Tax Act, 1961, for the assessment year 2008-09.
The case was heard by the Delhi Bench ‘B’ of the Income Tax Appellate Tribunal (ITAT), New Delhi, comprising Shri C.M. Garg, Judicial Member, and Shri M. Balaganesh, Accountant Member.
ITA No. 1466/Del/2020: This appeal by Gopal Kumar Goyal was against the order of the CIT(A)-26, New Delhi dated 30.01.2020, pertaining to A.Y. 2008-09 regarding the penalty proceedings initiated under Section 271AAA of the Act.
The appellant’s counsel submitted that for the same assessment year 2008-09, the AO made an addition, which the appellant contested before the CIT(A). The CIT(A) allowed the appeal of the appellant and deleted the addition. However, the revenue department preferred an appeal in ITA No. 1552/Del/2018, which was dismissed by the coordinate bench of the Tribunal by order dated 08.02.2023. The Tribunal held that the approval granted by the Additional CIT under Section 153D of the Act was mechanical and without application of mind, rendering the assessment orders bad in law and annulling the same.
The Tribunal noted that the coordinate bench had adjudicated cross appeals against the appellant listed at Sl. No. 36 and 37 of the cause title of the tribunal order dated 08.02.2023. The relevant findings stated that the approval granted by the Additional CIT was mechanical and devoid of any application of mind, resulting in the annulment of the assessment orders under Section 143(3) read with Section 153A of the Act for A.Y. 2008-09.
Since the foundation of the penalty order under Section 271AAA was the annulled assessment order, the Tribunal held that the penalty could not be sustained. The Tribunal directed the AO to delete the impugned penalty.
Order pronounced in the open court on 14/07/2023.
SD/- SD/-
(M. BALAGANESH) (C. M. GARG)
Accountant Member Judicial Member
Date: 14/07/2023
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Assistant Registrar, ITAT, New Delhi
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