G.D. Goenka Pvt Ltd Vs ACIT (ITAT Delhi)
New Delhi: The Income Tax Appellate Tribunal (ITAT), Delhi Bench, has set aside penalty orders issued against G.D. Goenka Pvt. Ltd. for assessment years 2016-17, 2017-18, and 2018-19. The tribunal ruled that the penalties, imposed under various sections including 271(1)(c), 270A, and 271AAB, could not stand because the underlying assessment orders had been previously quashed by the ITAT itself.
The dispute originated from assessment orders passed under Section 153A read with Section 143(3) of the Income Tax Act, 1961, following a search conducted on the assessee’s premises in July 2017. For the assessment year 2016-17, the Assessing Officer (AO) initially completed the assessment in December 2019. Subsequently, the Commissioner of Income Tax (Appeals) [CIT(A)], while hearing the assessee’s appeal against the assessment, enhanced the income by Rs. 25,00,000. This enhancement led the CIT(A) to initiate and later impose a minimum penalty of 100% of the tax sought to be evaded under Section 271(1)(c) for concealment of income, based on the enhanced amount. Similar penalty proceedings followed for AYs 2017-18 and 2018-19, albeit under different sections (Section 270A and 271AAB respectively).
Aggrieved by the penalty orders issued by the CIT(A) in January 2024, G.D. Goenka Pvt. Ltd. filed appeals before the ITAT.
