This case involves Babli Kukreja from New Delhi, who appealed against a penalty levied by the ACIT, Central Circle-15, New Delhi. The penalty was originally confirmed by the CIT(A)-23 but was contested on the grounds that the related quantum addition had been previously deleted.
The appeal was heard by the ITAT, Delhi Bench ‘A’, comprising Accountant Member N. K. Billaiya and Judicial Member Yogesh Kumar US. During the proceedings, both the appellant and respondent presented their cases, and the earlier tribunal order deleting the quantum addition was referenced.
The tribunal found merit in the counsel’s contention that since the quantum addition had been deleted, the penalty under section 271(1)(c) of the Income Tax Act should also be revoked. Consequently, the tribunal directed the Assessing Officer to delete the penalty. This judgment emphasizes the tribunal’s approach towards consistency and fairness in the assessment and penalty processes.
The decision, pronounced on February 21, 2022, allowed the appeal by Babli Kukreja, thus reversing the penalty associated with the assessment year 2006-07. The case highlights the importance of correlating penalty provisions with substantive tax findings and serves as a pertinent example of judicial scrutiny in tax appeals.
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