Case Law Details
Sharda Educational Trust Vs JCIT (ITAT Delhi)
The Bench is of firm view that the foundation of issuing show cause notice for penalty u/s 271(1)(c) of the Act, being crumbled by a verdict of this Tribunal, by deletion of additions, the penalty order alone cannot stand by its own against the assessee. Reliance in this regard can be placed on the judgement of Hon’ble Delhi High Court in the case of Principal CIT vs. Fortune Technocomps P.Ltd. vide ITA 313/2016 dated 13th May, 2016 where it has held that once the assessment order of the AO in the quantum proceedings was altered by the Ld.CIT(A), in a significant way, the very basis of initiation of penalty proceedings was nonexistent. The Hon’ble Allahabad High Court in the cases of Shadiram Balmukand [1972] 84 ITR 183 and Dwarka Prasad Subhas Chandra [1974] 94 ITR 154 and the Hon’ble Gujarat High Court in the case of Lakkdhir Lalji [1972] 85. ITR 77 have also held that when the original basis of initiation of the penalty proceeding is altered or modified by the appellate authority, the authority initiating the penalty proceedings has no jurisdiction thereafter to proceed on the basis of the findings of the appellate authority. The Hon’ble Supreme Court in the case of K.C. Builders vs. ACIT 135 Taxman 461 (SC), has made it crystal clear that where the additions made in the Assessment Order, on the basis of which penalty for concealment was levied, are deleted, by ITAT or otherwise, the penalty cannot stand by itself and is liable to be cancelled.
FULL TEXT OF THE ORDER OF ITAT DELHI
The assessee has come in appeal before the Tribunal challenging the appellate order dated 30.01.2019 of Commissioner of income Tax (Appeals)-2, Noida, by which the appeals of the assessee for the assessment years 2011-12 to 2017-18, against order dated 19.09.2018 of Ld. AO u/s 271C(1)(a) of Income Tax Act, 1961 was sustained.
2. Since identical issues are involved in all these appeals, therefore, these appeals were heard together and are being disposed of by this common order
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