DCIT, CIRCLE 1(3)(1), MUMBAI vs. FIRMENICH AROMATICS PRODUCTION (INDIA) PRIVATE LIMITED, MUMBAI

PER PAWAN SINGH, JUDICIAL MEMBER:

assessee are directed against the order of ld. Commissioner of

Income Tax (Appeals), , [for short “CIT(A)”] dated 06.01.2026, for

ITA No.3421/Mum/2026 & CO. No. 217/Mum/2026 (AY. 2020-21) Firmenich Aromatics Production (India) Pvt. Ltd., Mumbai

the assessment year 2020-21.The revenue has raised following

grounds of appeal:-

“(i) On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the penalty levied u/s 270A of the Act amounting to Rs. 19,62,25,846/- relying on Hon'ble ITAT's order in ITA No. 3987/Mum/2024 for AY 2020-21 in assessee's own case wherein the quantum addition was deleted, ignoring the fact that the Revenue has not accepted the said Hon'ble ITAT's decision of deletion of quantum addition and further appeal u/s. 260A of the Act is being processed for filing before Hon'ble Bombay High Court.

has filed its cross objection (‘CO’) raising following grounds:-

The Respondent raises the following grounds which are without prejudice to one another:

“(i) On facts and circumstances of the case and in law, the penalty order dated 20 March 2025 passed by the learned Assessing officer('AO') under section 270A of the Income-tax Act, 1961 (the 'Act') is bad in law.

(ii) On facts and circumstances of the case and in law, the learned AO has erred in levying penalty under section 270A of the Act without appreciating the fact that the Appellant has not under-reported the income and is covered by exclusions provided under section 270A(6) of the Act.

(iii) On facts and circumstances of the case and in law, the learned AO has erred in not specifying the relevant limb of section 270A(2) of the Act under which penalty proceedings were initiated. Therefore, the penalty proceedings are void-ab-initio.

The Respondent craves leave to amend, delete, rectify, substitute and modify any of the aforesaid grounds of cross-objections or add a new ground or grounds of cross-objection at any time before or at the time of hearing the cross-objections.

are perused. The Learned Authorised Representative (‘Ld. AR’) of the

assessee submits that the additions/ adjustment made in the

assessment order, on which penalty were levied has already been

deleted by the Tribunal in the appeal against the quantum

ITA No.3421/Mum/2026 & CO. No. 217/Mum/2026 (AY. 2020-21) Firmenich Aromatics Production (India) Pvt. Ltd., Mumbai

assessment in ITA No. 3987/Mum/2024 dated 05.06.2025. The Ld.

AR for the assessee submits that, once the addition /adjustment in

assessment order have been deleted, the penalty order will not

survive. The Ld. AR of the assessee furnished copy of order of

Tribunal in the assessee’s own case in ITA No. 3987/Mum/2024.

Departmental Representative (‘Ld. CIT- DR’) submits that against the

order of tribunal in quantum assessment, the revenue has already

filed an appeal before the Jurisdictional High Court. Therefore, we

support the order of the lower authorities.

have gone through the orders of the lower authorities carefully. We

have also seen the order of the Coordinate Bench in quantum

assessment in ITA No. 3987/Mum/2024 (Supra), wherein all

adjustments / additions on account of Transfer Pricing Adjustment

(‘TPA’), which were the basis levying penalty, have been deleted.

Thus, keeping in view that no addition in the assessment order

ultimately survived. Therefore, penalty under Section 270A will also

not survive. We find that the ld CIT(A) while deleting the penalty

followed the order of Tribunal in quantum assessee. Hence, we

affirm the order of ld CIT(A). No contrary facts or law is brought to

our notice to take other view.

ITA No.3421/Mum/2026 & CO. No. 217/Mum/2026 (AY. 2020-21) Firmenich Aromatics Production (India) Pvt. Ltd., Mumbai

deleting the penalty and dismissed the appeal of the revenue.

Therefore, adjudicating the cross objection filed by the assessee have

been academic in nature.

Order pronounced in open court on. 15.06.2026 at the time of

hearing of appeal.

Sd/- Sd/- Sd/- Sd/- MANOJ KUMAR AGGARWAL PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER

Mumbai, Dated: 15/06/2026 Aditi Pandare, PS Aditi Pandare, PS Aditi Pandare, PS Aditi Pandare, PS

Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT (5) Guard file. By Order

Assistant Registrar/Sr Private Secretary ITAT, Mumbai