DY. COMMISSIONER OF INCOME TAX 19(3) , MUMBAI vs. RAJENDRA RAMESHCHANDRA CHATURVEDI, MUMBAI

Shri Rajendra Rameshchandra Chaturvedi “1. Whether Ld CIT(A) is correct in deleting the penalty levied by the Assessing Officer ws 271(1)(c) of the Act stating that the appeal against the assessment order before the ITAT is quashed 2 The Ld. CIT(A) has erred in deleting the penalty levied by the Assessing Officer u/s 271(1)(c) of the Act instead of observing the fact that the department had challenged the Hon'ble ITAT Order before the Hon’ble Bombay High Court.”

From the perusal of the grounds and from the order of the Ld. CIT (A) it is clear that, the penalty which has been levied by the AO on addition of Rs. 41,48,39,241/- made u/s.68; and addition of Rs. 2,07,41,962/- u/s.69C, the Tribunal has deleted both the additions vide order dated 23/12/2020 in & 7581/Mum/2019. Once the quantum has been deleted, then penalty u/s 271(1)(c) has no legs to stand. Otherwise also, this matter is pending before the Hon’ble High Court in the quantum proceedings, but at this stage, no penalty is leviable. Accordingly, the appeal of the Revenue is dismissed.

In the result, appeal of the Revenue is dismissed.