The Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘C’, adjudicated on the appeal filed by Jeet Singh against the order of ITO Ward-2(2), Gurgaon. The appeal, registered as ITA No. 345/DEL/2021, pertains to the assessment year 2008-09.
Jeet Singh, residing in Village Kadarpur, Sub Tehsil Badshahpur, District Gurugram, filed an appeal against the penalty order dated 15.03.2018 passed by the Assessing Officer (AO) under Section 271(1)(c) of the Income Tax Act, 1961. The penalty amounted to Rs. 1,01,56,420/-, arising from quantum additions of Rs. 3 crore.
The appellant, represented by Shri Mahvir Singh, Advocate, challenged the imposition of the penalty on the grounds that the quantum proceedings were set aside by the Co-ordinate Bench of the Tribunal, rendering the penalty order void.
The case was heard on 12.09.2023. The Tribunal, comprising Shri Pradip Kumar Kedia, Accountant Member, and Shri Yogesh Kumar US, Judicial Member, reviewed the appellant’s submission and the respondent’s stance, represented by Shri D.K. Srivastava, Sr. DR.
At the outset, the appellant’s counsel submitted that the quantum proceedings were quashed by the Tribunal in ITA No. 3068/Del/2017, resulting in the annulment of the assessment order. Consequently, the penalty order had no legal standing.
The Learned Department Representative did not object and acknowledged the annulment of the quantum proceedings.
The Tribunal found that the penalty order was based on an annulled assessment order and thus had no legs to stand on. Therefore, the Tribunal deleted the impugned penalty.
The appeal filed by Jeet Singh was allowed, and the penalty imposed by the Assessing Officer was deleted.
The order was pronounced in the open court on 12.09.2023.
Order Pronounced in the Open Court on 12/09/2023.
Signed by:
(YOGESH KUMAR US) – Judicial Member
(PRADIP KUMAR KEDIA) – Accountant Member
Date: 12/09/2023
Prabhat
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