Case Number: ITA 5444/DEL/2019
Appellant: Punam Duggal, New Delhi
Respondent: ACIT Central Circle 4, New Delhi
Assessment Year: 2011-12
Result: Final Tribunal Order
Case Filed on: 2019-06-19
Date of Order: 2023-01-31
Pronounced on: 2023-01-31
The case of Punam Duggal vs. ACIT Central Circle 4, New Delhi pertains to the assessment year 2011-12. The primary issue in this case was the addition of unexplained credit entries in the appellant’s bank account, which led to significant penalties and subsequent appeals.
On 29.12.2015, a seizure and search action was carried out by the Revenue Department. Following this, the Assessing Officer, via assessment orders dated 27.12.2017 under section 153A of the Income-tax Act, 1961, made additions of Rs. 72,49,208/- for the assessment year 2011-12 on account of unexplained credit entries in Punam Duggal’s bank account.
Aggrieved by these additions, Punam Duggal preferred a first appeal before the learned Commissioner of Income-tax (Appeals)-23, New Delhi. The Commissioner, in appellate orders, made an enhancement of Rs. 24,00,000/- for the assessment year 2011-12.
Subsequently, the Assessing Officer initiated penalty proceedings under section 271(1)(c) of the Income-tax Act and ultimately imposed a penalty of Rs. 9,27,000/-, which was affirmed by the Commissioner in a consolidated order dated 07.06.2019. Punam Duggal, dissatisfied with the decision, appealed against the penalty orders.
During the Tribunal hearing, Punam Duggal’s representative, Sh. Vijay Kumar Singla, argued that the quantum appeals for the assessment years in question had already been allowed by the Tribunal in a consolidated order dated 19.01.2021. This order deleted the additions on the basis of which the penalties were imposed.
The Tribunal, comprising Shri N.K. Choudhry, Judicial Member, and Dr. B.R.R. Kumar, Accountant Member, considered the facts and circumstances of the case. It was noted that the quantum additions had been deleted by the Tribunal, and therefore, the basis for imposing penalties no longer existed. Citing the Supreme Court’s decision in K.C. Builders vs. ACIT, the Tribunal held that when the additions on which penalties were based are deleted, the penalties cannot stand.
In light of these observations, the Tribunal deleted the penalties imposed on Punam Duggal for the assessment year 2011-12. The appeal was thus allowed.
Order pronounced in the open court on 31/01/2023.
Signatories:
Dr. B.R.R. Kumar, Accountant Member
N.K. Choudhry, Judicial Member
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