The case ITA 229/DEL/2019 concerns an appeal filed by the ACIT, Central Circle-18, against the company formerly known as HCP Petrochem Pvt. Ltd., now operating as Adhunik Technology Pvt. Ltd., for the assessment year 2012-13. This tribunal review focuses on the appellate decision to dismiss a substantial penalty initially levied on the company.
Originally, the ACIT imposed a penalty under Section 271(1)(c) of the Act amounting to over six million INR based on adjustments made during the assessment. However, these adjustments were later deleted by the ITAT in a quantum appeal, which fundamentally impacted the imposition of the penalty.
The CIT(A) noted the ITAT’s decision to delete the quantum additions and consequently removed the penalty. The Revenue challenged this decision, taking it to the High Court, yet the underlying adjustments remained dismissed by the ITAT.
The tribunal’s comprehensive review in December 2021 affirmed the CIT(A)’s decision, noting that without the quantum additions, the penalty had no legal basis to stand. This decision underscores critical aspects of how related legal findings influence penalty assessments.
This tribunal order is pivotal not only for its immediate financial implications for Adhunik Technology but also for its broader impact on how penalties related to quantum adjustments are handled in the judicial system. This analysis provides a detailed narrative of procedural adherence and legal precedents.
Tax Penalty Dismissal in ITA 229/DEL/2019: ACIT vs. Adhunik Technology Pvt. Ltd.
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