Issue relating to deletion of penalty levied u/s 271(1)(c) of the Income tax Act, 1961

Last updated: 11 September 2021

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The Income Tax Appellate Tribunal has dismissed appeals filed by the Revenue concerning penalties levied on Housing & Urban Development Corporation Ltd (HUDCO). The penalties, amounting to over Rs 3.81 crore for AY 2006-07 and over Rs 2.58 crore for AY 2007-08, were levied under Section 271(1)(c) of the Income Tax Act, 1961. The Tribunal found merit in HUDCO's arguments, noting that penalties on identical facts for other assessment years had also been deleted.

Court :
ITAT Delhi

Brief :
The above two separate appeals by the Revenue are preferred against the order of the Commissioner of Income Tax [Appeals] - 35, New Delhi dated 15.12.2017 pertaining to Assessment Years 2006-07 and 2007-08 respectively.

Citation :
ITA No. 2001/DEL/2018 [A.Y 2006-07]

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH,
NEW DELHI (THROUGH VIDEO CONFERENCING]
BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND
SHRI KULDIP SINGH, JUDICIAL MEMBER
ITA No. 2001/DEL/2018 [A.Y 2006-07]
ITA No. 2002/DEL/2018 [A.Y 2007-08]

The Addl. CIT
Range – 4
New Delhi Lodhi Road,

Vs.

Housing & Urban Development

Corporation Ltd, HUDCO Bhawan

New Delhi
PAN : AAACH 0632 A

Date of Hearing : 01.09.2021
Date of Pronouncement : 01.09.2021
Assessee by : Shri Gagan Kumar, Adv
Revenue by : Ms Sunita Singh,CIT- DR

Shri Rajesh Kumar, Sr. DR

ORDER

Since both the appeals were heard together, these are being disposed of by this common order for the sake of convenience and brevity.

2. The common grievance in both these appeals relate to the deletion of penalty levied u/s 271(1)(c) of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short] amounting to Rs. 3,81,61,550/- in A.Y 2006-07 and Rs. 2,58,49,796/- in A.Y 2007-08.

3. We have carefully perused the orders of the authorities below. We find force in the contention of the ld. counsel for the assessee. On identical set of facts, penalty u/s 271(1)(c) of the Act was levied in A.Ys 2009-10 and 2005-06.

4. In the result, both the appeals filed by the Revenue in ITA Nos. 2001 & 2002/DEL/2018 are dismissed.
The order is pronounced in the open court on 01.09.2021 in the presence of both the rival representatives.

Please find attached the enclosed file for the full judgement

FAQ :

The appeals concerned the deletion of penalties levied on Housing & Urban Development Corporation Ltd (HUDCO) under Section 271(1)(c) of the Income Tax Act, 1961.

The assessment years involved were 2006-07 and 2007-08.

The penalties amounted to Rs 3,81,61,550/- for AY 2006-07 and Rs 2,58,49,796/- for AY 2007-08.

The Tribunal dismissed the appeals filed by the Revenue, upholding the deletion of the penalties levied on HUDCO.

The Tribunal found force in the assessee's contention, noting that penalties on identical facts for other assessment years (2009-10 and 2005-06) had also been deleted.