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Income Tax Appellate Tribunal, “A” BENCH, MUMBAI
Before: SHRI NARENDRA KUMAR BILLAIYA, HONBLE & SHRI SANDEEP SINGH KARHAIL, HONBLE
आदेश/O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
This appeal by the revenue is preferred against the order of the ld. CIT(A)-50, Mumbai [hereinafter “the ld. CIT(A)”] dated 06/02/2025 pertaining to AY 2018-19.
2. The grievance of the revenue read as under:- “1. On facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the penalty levied by the Assessing Officer, as the appeal is pending before the Hon’ble High Court against the deletion of quantum addition by Hon’ble ITAT.
The appellant craves leave to add to, alter, amend, modify and/or delete any or all of the above said grounds of appeal, the appellant reserves its right to file further submissions in the appeal.”
2 3. A bare perusal of the aforementioned grounds shows that this appeal by the revenue has to be dismissed for the simple reason that the quantum addition deleted by the Tribunal has been appealed before the Hon’ble High Court. The Hon’ble High Court has neither stayed the operation of the order of the Tribunal, nor barred the Tribunal to decide the issues relating to the penalty. Therefore, on the ground stated above, the appeal deserves to be dismissed.
However, on merits of the case, the roots for the levy of penalty lie in the assessment order dated 30/12/2019 framed u/s 143(3) of the Act by which the AO computed the total taxable income at Rs. 22,27,42,921/- after computing the business income at Rs. 20,10,52,047/- , addition u/s 69C of the Act Rs. 20,00,000/- and disallowance u/s 14A Rs. 1,96,90,874/-. The additions travelled up to the Tribunal and the Tribunal in & 2005/Mum/2021 vide order dated 20/06/2023, has deleted the additions on account of classification of capital gains as business income of Rs. 20,10,52,047/- and also deleted the addition of Rs. 20,00,000/- made u/s 69C of the Act and further restricted the disallowance made u/s 14A of the Act amounting to Rs.1,96,90,874/- to Rs.3,62,500/-.
Since the substantive additions have been deleted and the disallowance u/s 14A of the Act has been estimated at Rs. 3,62,500/-, the ld. CIT(A) deleted the penalty levied by the AO on such disallowance.
Considering the facts of the case in totality as discussed hereinabove, we do not find any error or infirmity in the findings of the ld. CIT(A).