Manoj Kumar vs ACIT Circle 62: Penalty Appeal for AY 2010-11

Manoj Kumar vs ACIT Circle 62: Penalty Appeal for AY 2010-11

Case Number: ITA 5731/DEL/2019

Appellant: Manoj Kumar, New Delhi

Respondent: ACIT, Circle-62(1), New Delhi

Assessment Year: 2010-11

Case Filed On: 2019-07-01

Order Type: Final Tribunal Order

Date of Order: 2021-01-08

Pronounced On: 2021-01-08

Background

The case involves Manoj Kumar as the appellant and the Assistant Commissioner of Income Tax (ACIT), Circle-62(1), New Delhi, as the respondent. The dispute pertains to the imposition of penalty under Section 271(1)(c) for the assessment year 2010-11. The appeal was filed on 2019-07-01, and the final tribunal order was pronounced on 2021-01-08.

Reason for Filing the Case

Manoj Kumar filed the case challenging the imposition of penalty under Section 271(1)(c) of the Income Tax Act. The penalty was levied for alleged concealment of income or furnishing of inaccurate particulars of income for the assessment year 2010-11.

Tribunal Proceedings

On 8th January 2021, the tribunal, comprising Hon’ble Justice P.P. Bhatt, President, and Shri G.S. Pannu, Vice President, heard the case through video conference. The appellant was represented by Sh. J.S. Kochar, CA, while the respondent was represented by Sh. M. Barnwal, Sr. DR.

Arguments Presented

The appellant’s counsel, Sh. J.S. Kochar, CA, argued that the assessment order on which the penalty was imposed had already been quashed by the ITAT, ‘C’ Bench, New Delhi, vide its order dated 24.02.2020 in ITA No. 1627/DEL/2016 (AY 2010-11). The counsel presented a copy of the tribunal’s order dated 24.02.2020 for reference. The counsel contended that since the assessment had been quashed, the penalty in dispute was not sustainable in the eyes of the law and should be deleted accordingly.

The respondent’s representative, Sh. M. Barnwal, Sr. DR, did not raise any objection to the request made by the appellant’s counsel.

Tribunal’s Decision

The tribunal considered the arguments presented by both parties and reviewed the orders of the authorities below. The tribunal also examined the order of the ITAT in the appellant’s quantum appeal, where the assessment was quashed. The key points from the tribunal’s order are as follows:

Quashing of Assessment Order

The ITAT ‘C’ Bench, New Delhi, had quashed the assessment order in ITA No. 1627/DEL/2016 (AY 2010-11) on 24.02.2020. The tribunal held that the notice dated 01.09.2011 issued by the CIT, Circle-37(1) was without jurisdiction and was thus invalid. Additionally, the notice dated 30.8.2012 issued by the ITO, Ward 38(2), New Delhi, was beyond the period of limitation and was also invalid. Consequently, the assessment order was deemed void ab initio.

Deletion of Penalty

Given that the assessment order was quashed, the tribunal found that the penalty imposed under Section 271(1)(c) was not sustainable in the eyes of the law. Therefore, the tribunal ordered the deletion of the penalty.

Conclusion

The tribunal upheld the appellant’s contention and quashed the penalty imposed under Section 271(1)(c) for the assessment year 2010-11. The appeal of the assessee was allowed, concluding the proceedings.

Order pronounced on: 08/01/2021

Signatories:

G.S. PANNU, Vice President

Justice P.P. BHATT, President

Dated: 08/01/2021

Copy forwarded to:

• Appellant
• Respondent
• CIT
• CIT(A)
• DR: ITAT

ASSISTANT REGISTRAR

ITAT NEW DELHI

Manoj Kumar vs ACIT Circle 62: Penalty Appeal for AY 2010-11