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Income Tax Appellate Tribunal, MUMBAI BENCH “E ”, MUMBAI
ORDER
PER VIKAS AWASTHY, JM:
1. This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [ in short ‘the CIT(A) dated 30/03/2022 for the Assessment Year 2012-13,in penalty proceedings u/s. 271(1)(c) of the Income Tax Act, 1961 [in short ‘the Act’].
2. Dr. P.Daniel appearing on behalf of the assessee submitted that the Tribunal in for assessment year 2012-13 decided on 05/07/2019 has set aside the additions and has restored the same back to the file of Assessing Officer for fresh adjudication. Since the additions have been set-aside, penalty proceedings arising there from does not survive. The CIT(A) has recorded this fact and still dismissed the appeal of assessee.
Shri Brajendra Kumar representing the Department vehemently defended the impugned order. The ld. Departmental Representative admitted that the Tribunal has set-aside quantum proceedings to the file of Assessing Officer for fresh adjudication.
We have heard the submissions made by rival sides. The penalty u/s. 271(1) (c) of the Act has been levied by the Assessing Officer vide order dated 29/03/2019 in respect of following additions:
Disallowance of interest expenditure : Rs. 5,28,85,963/-
Cessation of liability u/s. 41(1) : Rs. 2,97,06,230/- The assessee had assailed the aforesaid additions in (supra) before the Tribunal. The Co-ordinate Bench has set-aside both these additions and restored the issue back to the file of Assessing Officer for re- examination. Since, the substratum for levy of penalty has eroded the penalty proceedings arising therefrom does not survive. Consequently, the penalty is quashed.
In the result, appeal by assessee is allowed.
Order pronounced in the open court on Wednesday the 13th day of July, 2022.