Case Number: ITA 1464/DEL/2020
Appellant: Shivgori Builders (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: 2023-08-18
Pronounced On: 2023-08-18
Shivgori Builders (P) Ltd, a company based in New Delhi, appealed against the penalty imposed by the DCIT Central Circle-14, New Delhi for the assessment year 2008-09. The penalties were levied under Section 271AAA of the Income Tax Act, 1961. The company contested the legality of these penalties and the procedures followed in imposing them.
The case was heard by the Delhi Bench ‘G’ of the Income Tax Appellate Tribunal (ITAT), New Delhi, comprising Sh. N. K. BILLAIYA, Accountant Member, and Sh. YOGESH KUMAR U.S, Judicial Member.
ITA No. 1464/Del/2020: This appeal by Shivgori Builders 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.
At the outset, the counsel for the assessee pointed out that the assessment order had been annulled by the Tribunal in a bunch of 111 appeals, where the appeal of the assessee was at Sl. No. 66 in ITA No. 1288/DEL/2018. It was argued that since the assessment order had been annulled, the penalty so levied does not have any legs to stand.
The DR strongly contested this submission, stating that even if the assessment order was annulled, penalty is leviable under Section 271AAA of the Act.
The DR, however, conceded that the Tribunal had indeed annulled the impugned assessment order.
Upon careful consideration of the rival contentions and 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 Sl. No. 66 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 by the coordinate bench of the Tribunal by annulling the relevant assessment order, the superstructure, including the penalty order under Section 271AAA of the Act, must fall. The AO was accordingly directed to delete the impugned penalty.
In the result, the appeal of the assessee (Shivgori Builders) was allowed.
Order pronounced in the open court on 18.08.2023.
SD/- SD/-
[YOGESH KUMAR U.S] [N.K. BILLAIYA]
JUDICIAL MEMBER ACCOUNTANT MEMBER
Date: 18th August, 2023
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Asst. Registrar, ITAT, New Delhi
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