Case Number: ITA 1460/DEL/2020
Appellant: ITO Ward-14(3), New Delhi
Respondent: Kesha Appliances Pvt Ltd, New Delhi
Assessment Year: 2012-13
Case Filed On: 2020-08-05
Order Type: Final Tribunal Order
Date of Order: 2022-11-09
Date of Pronouncement: 2022-11-09
The Income Tax Appellate Tribunal (ITAT) Delhi ‘C’ Bench adjudicated the appeal filed by the Income Tax Officer (ITO), Ward-14(3), New Delhi, against Kesha Appliances Pvt Ltd. The appeal was related to the assessment year 2012-13 and was filed following the order of the Commissioner of Income Tax (Appeals) [CIT(A)], which set aside the penalty imposed under Section 271(1)(c) of the Income Tax Act, 1961.
This case involves the appellant, ITO Ward-14(3), New Delhi, challenging the order of the CIT(A), who allowed the appeal of the respondent, Kesha Appliances Pvt Ltd. The CIT(A) set aside the penalty order as the quantum order had been previously set aside by the Tribunal. The Revenue’s ground for appeal was that the issue was still alive, as the appeal against the Tribunal’s order was pending before the High Court.
The primary grounds of appeal raised by the ITO included:
The Tribunal, comprising Sh. Anil Chaturvedi, Accountant Member, and Sh. Anubhav Sharma, Judicial Member, reviewed the appeal and submissions made by both parties. They focused on the procedural and legal aspects of the case, especially the implications of the High Court’s decision.
The Tribunal noted that a copy of the order dated 17/11/2020 in ITA 1096/2018 & CM Appl. 5016/2019 from the Hon’ble Delhi High Court was placed on record. This order showed that the High Court had dismissed the Revenue’s appeal due to low tax effect, effectively nullifying the grounds raised by the Revenue in the present appeal.
The Tribunal affirmed that the CIT(A) had correctly allowed the appeal of the assessee by setting aside the penalty order, as the quantum order had already been set aside by the Tribunal. With the High Court dismissing the Revenue’s appeal, there was no substantive ground left to challenge the CIT(A)’s decision.
The ITAT Delhi ‘C’ Bench ruled that the appeal by the Revenue lacked substance following the High Court’s dismissal of the related appeal due to low tax effect. Consequently, the Tribunal dismissed the Revenue’s appeal, upholding the CIT(A)’s order that set aside the penalty imposed on Kesha Appliances Pvt Ltd.
Order: The appeal of the Revenue is dismissed.
Date of Order: 2022-11-09
Date of Pronouncement: 2022-11-09
Bench: Delhi ‘C’ Bench
Members: Sh. Anil Chaturvedi, Accountant Member; Sh. Anubhav Sharma, Judicial Member
Appellant Representative: Shri Anuj Garg, Sr. DR
Respondent Representative: Ms. Anjali Jain, Adv.
Case Conclusion: The ITAT upheld the CIT(A)’s decision to set aside the penalty imposed on Kesha Appliances Pvt Ltd, dismissing the Revenue’s appeal following the High Court’s dismissal of the related appeal due to low tax effect.
ITA 1460/DEL/2020: ITO vs. Kesha Appliances Pvt Ltd – Tax Penalty Dispute for AY 2012-13
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