Case Law Details
Sanjay Duggal Vs ACIT (ITAT Delhi)
Victory for Sanjay Duggal as ITAT Delhi quashes assessments under 153A, nullifying penalties. Learn why the penalty orders couldn’t survive. Decided in favor of the assessee.
The assesse was subject to assessment u/s 153A of the Act and additions u/s 68 were made. The first appellate authority ie Ld CIT(A) further made the enhancements along with initiated the penalty proceedings. Penalty @ 125% of the tax sought to be evaded have been levied. The Hon’ble ITAT Delhi deleted all the additions for want of valid approval u/s 153D of the Act. However, DR stated since the Assessment Order has been quashed for want of valid approval u/s 153D, the penalty has been levied on the enhancement made by Ld CIT(A) for which no approval is required. The Hon’ble ITAT held since the Quantum has been deleted and all the orders of authorities below are set aside and all the assessment orders u/s 153A are quashed as well as the impugned appellate orders, the penalty orders can’t survive, as the very basis of imposing the penalty. Decided in favor of Assesse
FULL TEXT OF THE ORDER OF ITAT DELHI
Captioned appeals by four different assessees arise out of a consolidated order dated 07.06.2019 of learned Commissioner of Income-Tax (Appeals)-23, New Delhi, confirming penalty imposed under Section 271(1)(c) of the Income-Tax Act, 1961 for the assessment years mentioned above.
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