Case Number: ITA 5655/DEL/2019
Appellant: Addl. CIT, Special Range-7, New Delhi
Respondent: Punjab National Bank, New Delhi
Assessment Year: 2013-14
Case Filed On: 2019-06-28
Order Type: Final Tribunal Order
Date of Order: 2022-08-31
Pronounced On: 2022-08-31
This case involves an appeal filed by the Additional Commissioner of Income Tax (Addl. CIT), Special Range-7, New Delhi, against the order of the Commissioner of Income Tax (Appeals)-VII, New Delhi. The appeal was filed on 2019-06-28, and the order was pronounced on 2022-08-31. The primary issue in this case was the imposition of a penalty under Section 271(1)(c) of the Income Tax Act, 1961, on Punjab National Bank for the assessment year 2013-14.
Punjab National Bank, the respondent, is based in New Delhi. The appeal was filed by the Addl. CIT, Special Range-7, against the order of the CIT(A)-VII, New Delhi, dated 03.04.2019, which arose from the assessment order dated 17.03.2016 passed by the Assessing Officer (AO) under Section 143(3) of the Income Tax Act, 1961.
The Revenue challenged the imposition of a penalty amounting to Rs. 7,41,71,078/- imposed by the AO under Section 271(1)(c) of the Act. The penalty was imposed on Punjab National Bank for alleged concealment of income and furnishing inaccurate particulars of income for the assessment year 2013-14.
The appellant raised the following grounds of appeal:
The Tribunal heard the representatives of both sides and carefully perused the case records. The Tribunal observed that the quantum addition on which the penalty was based had been deleted by the Co-ordinate Bench of the Tribunal in ITA No.5773/Del/2015 order dated 28.08.2019. The deletion of the quantum addition meant that the basis for imposing the penalty no longer existed.
The Tribunal noted that the Co-ordinate Bench’s order in the quantum proceedings clearly nullified the foundation for the penalty. As a result, the imposition of the penalty under Section 271(1)(c) of the Act could not be sustained.
Having regard to the assertion made on behalf of the respondent and in the light of the order of the Co-ordinate Bench in the quantum proceedings, the Tribunal concluded that the edifice for imposing the penalty had ceased to exist. Consequently, the penalty imposed under Section 271(1)(c) of the Act was deleted.
The Tribunal dismissed the appeal filed by the Revenue and upheld the deletion of the penalty imposed on Punjab National Bank. The decision was announced in the open court on 31.08.2021.
Order pronounced on this 31st day of August, 2021.
Signed by:
(CHANDRA MOHAN GARG) JUDICIAL MEMBER
(PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER
Date: 31st August, 2021
Copy forwarded to:
// BY Order //
Assistant Registrar, ITAT Delhi Benches, Delhi
Addl. CIT vs Punjab National Bank – Penalty Appeal for AY 2013-14
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