ASSISTANT COMMISSIONER OF INCOME TAX , MUMBAI vs. THE GREAT EASTERN SHIPPING COMPANY LIMITED, MUMBAI

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ITA 8845/MUM/2025Status: DisposedITAT Mumbai02 April 2026AY 2015-163 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the quantum additions, which formed the basis for the penalty, were deleted by a Coordinate Bench of the ITAT, the penalty proceedings had no foundation. Therefore, the deletion of penalty by the NFAC was upheld.

What were the facts?

The Revenue appealed against the deletion of penalty by the NFAC. The penalty was levied under Section 271(1)(c) based on additions made in the assessment order.

What were the issues?

Whether penalty under Section 271(1)(c) can survive when the underlying additions are deleted. The validity of penalty proceedings in the absence of sustained additions.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 250,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI

For Appellant: Shri Jeet Kamdar
For Respondent: Shri Arun Kanti Datta (CIT DR)
Hearing: 26/03/2026Pronounced: 02/04/2026

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G”, MUMBAI BEFORE SHRI ANIKESH BANERJEE, JUDICIAL MEMBER AND SHRI ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.8845/Mum/2025 (Assessment year: 2015-16)

ACIT, Mumbai vs The Great Eastern Shipping Room No.573, Aayakar Company Limited Bhawan New Marines Lines 134A Ocean House, DR Anne Church Gate Mumbai-400020 Besant Road, Worli S.O., Mumbai- 400018 PAN: AAACT1565C APPELLANT RESPONDENT Assessee by : Shri Jeet Kamdar Revenue by : Shri Arun Kanti Datta (CIT DR) Date of hearing : 26/03/2026 Date of pronouncement : 02/04/2026 O R D E R Per: Anikesh Banerjee (JM): The instant appeal of the revenue filed against the order of the NFAC, Delhi [for brevity the “Ld. CIT(A)”], order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’) for Assessment Year 2015-16, date of order 29.10.2025. The impugned order emanated from the order of the National Faceless Assessment Centre, Delhi (for brevity the ‘Ld. AO’) order passed under section 271(1)(c) of the Act, date of order 29.03.2022.

2 ITA No.8845/Mum/2025 The Great Eastern Shipping Company Ltd. 2. The Ld. DR argued and relied on the order of the Ld. AO. 3. The Ld. AR submitted that penalty proceedings were initiated in respect of additions made in the assessment order passed under section 143(3) of the Act dated 29.12.2017. The penalty amounting to Rs.3,35,60,237/- was levied under section 271(1)(c) of the Act. The quantum additions were challenged before the ITAT, and the Coordinate Bench, in its consolidated order in IT(TP)A No.1129/Mum/2016, ITA No.1795/Mum/2019, and ITA No.1596/Mum/2018 dated 31.10.2024, deleted the said additions. In view of the aforesaid order of the ITAT, the Ld. CIT(A) deleted the penalty and allowed the appeal of the assessee.

4.

We have heard the rival submissions and perused the material available on record. Since the quantum addition no longer survives, the very foundation for levy of penalty under section 271(1)(c) of the Act ceases to exist. The Ld. CIT(A), following the order of the Coordinate Bench of the ITAT, Mumbai, has rightly deleted the penalty. We find no infirmity in the impugned order of the Ld. CIT(A). Accordingly, the appeal of the revenue stands dismissed.

5.

In the result, the appeal of the revenue bearing ITA No.8845/Mum/2025 is dismissed. Order pronounced in the open court on 02nd day of April 2026. Sd/- Sd/- (ARUN KHODPIA) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai,िदनांक/Dated: 02/04/2026 SAUMYASr.PS

3 ITA No.8845/Mum/2025 The Great Eastern Shipping Company Ltd. Copy of the Order forwarded to: 1. अपीलाथ�/The Appellant , 2. �ितवादी/ The Respondent. 3. आयकरआयु� CIT 4. िवभागीय�ितिनिध, आय.अपी.अिध., मुंबई/DR, ITAT, Mumbai 5. गाड�फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, MUMBAI

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