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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SHRI ABY T. VARKEY, JM & SHRI AMARJIT SINGH, AM
ORDER
PER ABY T. VARKEY, JM:
This is an appeal preferred by the revenue against the order of the Ld. CIT(A)/NFAC dated 21.11.2022 for AY 2011-12.
At the outset it is noted that this is a department appeal challenging the action of the Ld. CIT(A) to have deleted the penalty levied u/s 271 (1) (c) of the Income Tax Act, 1961 (herein after ‘the Act’) based on the fact that the quantum assessment made by the AO have been deleted by Tribunal vide order dated 29.04.2022 in ITA No. 1450/Mum/2021. 3. We have gone through the order passed by the Tribunal in the assessee’s own case (quantum appeal) for AY 2011-12 wherein the Tribunal was pleased to quash the reassessment order, wherein AO had made quantum addition of Rs.
2 AY 2011-12 M/s Strides Pharma Science Ltd 58,99,67,000/-. And since, the penalty was levied by AO u/s 271 (1) (c) of the Act, on the quantum addition passed in the re-assessment order, and since it stands quashed, the Penalty levied on the same also must fall because when the foundation goes super structure falls. Therefore, the Ld. CIT(A) rightly deleted the penalty levied by the AO and resultantly the appeal filed by the Revenue is dismissed.
In the result, the appeal of the revenue is dismissed. 4. Order pronounced in the open court on this 21/04/2023.