Initiating and levying of penalty u/s 271 AAA of the Income Tax Act, 1961

Last updated: 11 August 2021

Court :
ITAT Delhi

Brief :
This appeal by the assessee is directed against order dated 31/01/2018 passed by the Ld. Commissioner of Income Tax (Appeals)-24, New Delhi [in short 'learned CIT(A)'] in relation to penalty levied under section 271AAA of Income-tax Act, 1961 (in short 'the Act') for assessment year 2012-13. The grounds raisedby the assessee are reproduced.

Citation :
ITA No.2518/Del/2018

IN THE INCOME TAX APPELLATE TRIBUNAL,
DELHI BENCH: ‘B’ NEW DELHI
BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER
AND
SHRI O.P. KANT, ACCOUNTANT MEMBER
[Through Video Conferencing]
ITA No.2518/Del/2018
Assessment Year: 2012-13

Sh. Shailendra Kumar
Gautam,
RZ-36A/1, First Floor,
Bank of Baroda Gali,
Mahavir Enclave,
New Delhi

PAN :ADCPG0128L
(Appellant)

ACIT,
Central Circle-8,
New Delhi

(Respondent)

Appellant by Ms. Sangeeta Singh, CA
Respondent by Sh. Mahesh Thakur, Sr.DR

Date of hearing 14.07.2021
Date of pronouncement 27.07.2021

ORDER

This appeal by the assessee is directed against order dated 31/01/2018 passed by the Ld. Commissioner of Income Tax (Appeals)-24, New Delhi [in short ‘learned CIT(A)’] in relation to penalty levied under section 271AAA of Income-tax Act, 1961 (in short ‘the Act’) for assessment year 2012-13. The grounds raised by the assessee are reproduced.

2. At the outset, the learned Counsel of the assessee submitted that the quantum addition in respect of which the penalty under section 271AAA of the Act has been levied, has already been deleted by the Tribunal and, therefore, the penalty cannot survive and, accordingly, should be deleted. The Learned Counsel of the assessee filed a copy of the decision of the Tribunal in ITA No. 5804/Del/2015 & ITA No. 5897/Del/2015 for assessment year 2012-13 in quantum proceedings.

3. In our opinion, when the undisclosed income assessed by the Assessing Officer itself, has been deleted by the Tribunal, the penalty levied by the Assessing Officer and upheld by the Learned CIT(A) on said undisclosed income, cannot survive. Accordingly, we delete the penalty levied by the Assessing Officer, which was confirmed by the Learned CIT(A). The grounds of the appeal of the assessee are accordingly allowed.

4.In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 27th July, 2021.

Please find attached the enclosed file for the full judgement