Ratna Talwar vs ACIT Central Circle 4: Penalty Appeal for AY 2015-16

Ratna Talwar vs ACIT Central Circle 4: Penalty Appeal for AY 2015-16

Case Number: ITA 5724/DEL/2019

Appellant: Ratna Talwar, Delhi

Respondent: ACIT Central Circle-4, New Delhi

Assessment Year: 2015-16

Case Filed On: 2019-07-01

Order Type: Final Tribunal Order

Date of Order: 2022-06-27

Pronounced On: 2022-06-27

Background

The case involves Ratna Talwar as the appellant and the Assistant Commissioner of Income Tax (ACIT), Central Circle-4, New Delhi, as the respondent. The dispute pertains to the imposition of penalty under Section 271(1)(c) for the assessment year 2015-16. The appeal was filed on 2019-07-01, and the final tribunal order was pronounced on 2022-06-27.

Reason for Filing the Case

Ratna Talwar 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 2015-16.

Tribunal Proceedings

On 9th June 2022, the tribunal, comprising Shri Kul Bharat, Judicial Member, and Shri Pradip Kumar Kedia, Accountant Member, heard the case. The appellant was represented by Shri Kapil Goel, Adv., while the respondent was represented by Shri T. Kipgen, CIT-DR.

Arguments Presented

The appellant’s counsel referred to the decision rendered by the Co-ordinate Bench in a bunch of group cases, including the captioned assessees, passed in quantum proceedings vide order dated 19.01.2021. The counsel argued that since the quantum addition had been deleted, the basis for the penalty no longer existed.

The respondent did not rebut any of the observations made by the appellant’s counsel.

Tribunal’s Decision

The tribunal considered the rival submissions and the case records. The key points from the tribunal’s order are as follows:

Deletion of Quantum Addition

The tribunal noted that the quantum appeals related to the captioned appeals had been adjudicated in favour of the assessees, resulting in the deletion of the quantum addition. As the quantum addition was the basis for the imposition of the penalty, the tribunal found that the penalty order was liable to be quashed.

Quashing of Penalty Order

The tribunal quashed the penalty order levied under Section 271(1)(c), as the foundation for the penalty had been invalidated by the deletion of the quantum addition.

Conclusion

The tribunal upheld the appellant’s contention and quashed the penalty imposed under Section 271(1)(c) for the assessment year 2015-16. The appeals of the assessee were allowed, concluding the proceedings.

Order pronounced on: 27/06/2022

Signatories:

SHRI KUL BHARAT, Judicial Member

SHRI PRADIP KUMAR KEDIA, Accountant Member

Dated: 27/06/2022

Copy forwarded to:

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

ASSISTANT REGISTRAR

ITAT NEW DELHI

Ratna Talwar vs ACIT Central Circle 4: Penalty Appeal for AY 2015-16