SIVA INDUSTRIES AND HOLDINGS LIMITED,CHENNAI vs. DCIT, CHENNAI

Aggrieved by confirmation of penalty u/s 271(1)(c) for Assessment Year (AY) 2008-09 by learned Commissioner of Income Tax (Appeals)-15, Chennai [CIT(A)] vide order dated 11.02.2016, the assessee is in further appeal before us.

Upon perusal of case records, it could be seen that the assessee was saddled with certain additions which were subjected to penalty proceedings by Ld. AO vide order dated 26.06.2012. The Ld. AO levied penalty of Rs.1964.65 Lacs for various additions as enumerated in the penalty order. 3. The assessee assailed the penalty with partial success before Ld. CIT(A) vide impugned order dated 11.02.2016. The Ld. CIT(A) retained penalty on disallowance of consultancy charges and escrow fees. Aggrieved, the assessee is in further appeal before us. 4. We find that both the disallowances against which the penalty has been retained by Ld. CIT(A) has been deleted by Tribunal in assessee’s appeal order dated 23.12.2022. Since quantum disallowances have been deleted, the consequential penalty would not survive. We order so. For this reason alone, all the other grounds including legal grounds taken by the assessee has been rendered infructuous. 5. The assessee’s appeal stand allowed. Order pronounced on 23rd December, 2022.