ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2, JAIPUR vs. J.V.S. FOODS P. LTD., JAIPUR

Rival contentions have been heard and record perused.

At the outset the ld.AR placed on record the order of Tribunal, in assessee’s own case dated 16-07-2018, wherein additions so made have been deleted. The ld.AR also placed on record the order of Hon’ble Rajasthan High Court dated 14-03-2019 confirming the above order of Tribunal. additions have been deleted penalty so levied has no legs to stand.

We have considered the rival contentions and carefully gone through the orders of the authorities below and found from the record that in this case penalty has been imposed with respect to additions made by disallowing the exemption claimed u/s. 10(38) of the Act. Against the addition(s) the assessee approached the Tribunal and the Tribunal vide its order dated 16-07-2018 deleted the additions by observing at paras 4 to 5 at pages 7 to 16 of the said order. We found that Hon’ble Rajasthan High Court vide its order dated 14-03-2019 has confirmed the said order of the Tribunal. The ld. DR has also fairly conceded that quantum addition has been deleted by the Tribunal. Since quantum addition(s) have been deleted, the imposition of penalty has no legs to stand. Accordingly, we confirm the impugned order of the ld. CIT(A) deleting the imposition of penalty of Rs.90,00,000/- levied u/s. 271(1)( c) of the Act. Accordingly, we confirm the order of ld. CIT(A). Accordingly, Grounds raised by the revenue are dismissed.