Case Number: ITA 5409/DEL/2019
Appellant: Tara Mercantile Pvt. Ltd., New Delhi
Respondent: ACIT, Circle- 25(1), New Delhi
Assessment Year: 2011-12
Result: Final Tribunal Order
Case Filed On: 2019-06-17
Date of Order: 2019-08-13
Pronounced On: 2019-08-13
This legal case involves an appeal filed by Tara Mercantile Pvt. Ltd. against the ACIT, Circle-25(1), New Delhi, concerning a penalty of Rs. 37,44,384 imposed under section 271(1)(c) of the Income Tax Act for the assessment year 2011-12. The case was filed on June 17, 2019, and the final tribunal order was pronounced on August 13, 2019.
The appellant, Tara Mercantile Pvt. Ltd., faced a penalty imposed by the Assessing Officer (AO) under section 271(1)(c) for alleged concealment of income. The penalty was upheld by the Commissioner of Income Tax (Appeals) [CIT(A)] on May 1, 2019. Dissatisfied with the order, the appellant approached the Income Tax Appellate Tribunal (ITAT), Delhi Bench “I.2”, New Delhi.
The appellant raised several grounds in the appeal:
During the hearing, the counsel for the appellant, Sh. Lalit Mohan, argued that the ITAT had already deleted the addition on which the penalty was based in its order dated July 12, 2019, in quantum Appeal No. 1572/Del/2017 for AY 2011-12. He submitted a copy of the Tribunal’s order and requested the deletion of the penalty.
The Departmental Representative (DR), Sh. Surender Pal, did not raise any serious objections to the appellant’s request.
The ITAT, comprising Judicial Member Shri H.S. Sidhu and Accountant Member Shri Prashant Maharishi, carefully considered the submissions and records. The Tribunal noted that in the appellant’s own case, the ITAT had deleted the addition in quantum appeal No. 1572/Del/2017 for AY 2011-12. Consequently, the penalty based on this addition could not survive.
The ITAT concluded that the penalty imposed under section 271(1)(c) of the Act should be deleted. Accordingly, the appeal filed by Tara Mercantile Pvt. Ltd. was allowed.
Order Pronounced: August 13, 2019
Members:
Assistant Registrar, ITAT, Delhi Benches
Tara Mercantile Pvt. Ltd. vs ACIT: Dispute Over Penalty for AY 2011-12
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