DCIT CENT. CIR 1(2) , MUMBAI vs. MILAN KAVIN PARIKH, MUMBAI

This appeal by the Revenue is time barred by 108 days. The impugned order was passed during the period of COVID-19 Pandemic . The Hon'ble Supreme Court of India taking cognizance of the hardship caused to the litigants by pandemic extended the period of limitation under general laws and special laws vide order dated 23/09/2021 reported as “ Cognizance for Extension of Limitation, 132 taxmann.com 123. The present appeal has been filed within the extended period of limitation, hence, no delay.

Shri Vijay Mehta appearing on behalf of the assessee submitted at the outset that the CIT(A) has deleted penalty as the Tribunal in &1960/Mum/2020 vide order dated 07/04/2021 deleted the addition on which penalty was levied under section 271(1)(c) of the Income Tax Act, 1961 [in short ‘ the Act’]. 4. Shri Salil Mishra representing the Department supported the assessment order. 5. Both sides heard. The Revenue is in appeal against deleting of penalty levied under section 271(1)(c) of the Act. Undisputedly, the Tribunal has deleted the additions on which penalty under section 271(1)(c) of the Act has been levied. Once the substratum for levy of penalty has eroded the penalty does not survive. We find no infirmity in the impugned order, hence, the same is upheld and appeal of the Revenue is dismissed. Order pronounced in the open court on Wednesday the 10th day of August, 2022.