Case Number: ITA 1462/DEL/2020
Appellant: MM Buildcon (P) Ltd, 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: 2023-04-24
Pronounced On: 2023-04-24
MM Buildcon (P) Ltd, a company based in New Delhi, filed an appeal against the penalty imposed by the DCIT Central Circle-14, New Delhi for the assessment year 2008-09. The penalties were levied under Section 271(1)(c) and Section 271AAA of the Income Tax Act, 1961. The company challenged the legality of these penalties and the manner in which they were imposed.
The case was heard by the Delhi Bench ‘E’ of the Income Tax Appellate Tribunal (ITAT), New Delhi, comprising Sh. N. K. BILLAIYA, Accountant Member, and Sh. ANUBHAV SHARMA, Judicial Member.
ITA No. 1462/Del/2020: This appeal by MM Buildcon was against the order of the CIT(A)-26, New Delhi dated 30.01.2020 pertaining to A.Y. 2008-09 regarding the penalty levied under Section 271(1)(c) of the Act.
ITA No. 1463/Del/2020: This appeal by MM Buildcon was against the order of the CIT(A)-26, New Delhi dated 30.01.2020 pertaining to A.Y. 2008-09 regarding the penalty levied under Section 271AAA of the Act.
ITA No. 1433/Del/2020: This appeal by the revenue was against the order of the CIT(A)-26, New Delhi dated 30.01.2020 pertaining to A.Y. 2008-09 against the reduction of penalty levied under Section 271(1)(c) of the Act from 300% to 250%.
At the outset, the counsel for the assessee drew attention to the decision of the ITAT in a bunch of 111 appeals, pointing out that the entire assessments basis which the impugned penalties had been levied had been annulled by the Tribunal by a consolidated order dated 08.02.2023. The counsel provided a copy of the Tribunal’s decision.
The DR could not present any distinguishing decision in favor of the revenue.
Upon careful perusal of the orders of the authorities below, the Tribunal found force in the contention of the counsel for the assessee. The coordinate Bench, while deciding the bunch of 111 appeals, had considered the appeal of the captioned assessee at Sr. No.14 and at para-39 of its order held:
“Considering the facts from all possible angles, we have no hesitation to hold that the approval granted by the Addl. CIT is mechanical and without application of mind and the assessment order so framed pursuant to such approval u/s.143(3) r.w.s. 153A of the Act is bad in law and deserves to be annulled.”
Since the foundation had been removed, the superstructure must fall. The AO was accordingly directed to delete the impugned penalty.
In the result, the appeal of the assessee (MM Buildcon) was allowed and that of the revenue was dismissed.
Order pronounced in the open court on 24.04.2023.
SD/- SD/-
[ANUBHAV SHARMA] [N.K. BILLAIYA]
JUDICIAL MEMBER ACCOUNTANT MEMBER
Date: 24.04.2023
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Asst. Registrar, ITAT, New Delhi
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