Revenue challenges the deletion of penalties u/s. 271(1)(c) of the Income-tax Act, 1961

Last updated: 14 August 2021

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The Income Tax Appellate Tribunal (ITAT) Delhi has dismissed appeals filed by the Revenue concerning the deletion of penalties under Section 271(1)(c) of the Income-tax Act, 1961. The penalties had been imposed on Indian Armour Systems Pvt. Ltd. for assessment years 2009-10 and 2010-11. The Commissioner of Income Tax (Appeals) had previously deleted these penalties, reasoning that the additions made under Section 10B of the Act had already been set aside by the Tribunal in earlier quantum appeals.

Court :
ITAT Delhi

Brief :
Aggrieved by the orders dated 14/03/2018 passed by the learned Commissioner of Income Tax (Appeals)-Faridabad ("Ld. CIT(A)") in the cases of Indian Armour System Pvt. Ltd.

Citation :
ITA No. 3738 & 3739/Del/2018

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH ‘C’ NEW DLEHI
BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
AND
SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER
ITA No. 3738 & 3739/Del/2018
Assessment Year: 2009-10 & 2010-11

DCIT, Circle-1,

Faridabad.

PAN : AABCI5575Q

Appellant

Indian Armour Systems P. Ltd.,

Universal Lane, 22 Ft. Road,

Village Dudhola, PO- Bhagola

Palwal (Haryana)

Respondent

Appellant by : Ms. Anima, Sr. DR
Respondent by: Sh. M.K. Gupta, CA
Date of hearing: 28/07/2021
Date of order : 28/07/2021

ORDER

Aggrieved by the orders dated 14/03/2018 passed by the learned Commissioner of Income Tax (Appeals)-Faridabad ("Ld. CIT(A)") in the cases of Indian Armour System Pvt. Ltd.

2. Aggrieved by such penalty orders, assessee preferred appeals before the ld. CIT(A), who deleted the penalties on the premise that the addition so made u/s. 10B of the Act stood deleted by Tribunal in quantum appeal No. 808/Del/2014 for A.Y. 2008-09 and 5647/Del/2014 for A.Y. 2009-10 filed by assessee.

3.Having gone through the record in the light of undisputed facts, as noted above, we find no justification to interfere with the findings reached by the learned CIT(A) in the impugned orders.

4.In the result, the appeals of the Revenue are dismissed.
Order pronounced in the open court on this the 28th day of July,2021

Please find attached the enclosed file for the full judgement

FAQ :

The Revenue challenged the deletion of penalties imposed under Section 271(1)(c) of the Income-tax Act, 1961, by the Commissioner of Income Tax (Appeals).

The assessee was Indian Armour Systems Pvt. Ltd.

The assessment years involved were 2009-10 and 2010-11.

The CIT(A) deleted the penalties because the additions made under Section 10B of the Act, which formed the basis for the penalties, had already been deleted by the Tribunal in previous appeals.

The ITAT dismissed the appeals filed by the Revenue, upholding the deletion of the penalties.