2012 (11) TMI 1137 - AT - Income Tax

Summary

Issues involved: Appeal against deletion of penalty u/s 271(1)(c) of the Income-tax Act, 1961 by CIT(A) for AY 2002-03.

Summary:
1. The appeal was filed by the Revenue against the CIT(A)'s order setting aside the penalty imposed u/s 271(1)(c) of the Act.
2. The Revenue raised grounds challenging the deletion of the penalty amount.
3. The facts of the case involved additions made by the Assessing Officer and subsequent penalty proceedings initiated u/s 271(1)(c).
4. Both parties presented their arguments, including references to relevant court judgments.
5. The assessee's representative provided copies of orders from the Supreme Court and High Court supporting the deletion of penalty.
6. The Tribunal considered the judgments and observed that the penalty cannot be imposed based on additions made under regular provisions.
7. The Tribunal referred to a previous case involving the same issue where the penalty was deleted.
8. Ground no.1 of the appeal was decided in favor of the assessee based on previous judgments, leading to the dismissal of the Revenue's appeal.
9. Cross objections filed by the assessee were also dismissed as they became academic after the main appeal was decided in favor of the assessee.
10. Ultimately, both the appeal of the Revenue and the cross objection of the assessee were dismissed.

Judgment Date: 16.11.2012

Court: Appellate Tribunal ITAT DELHI

Citation: 2012 (11) TMI 1137 - ITAT DELHI