DEPUTY COMMISSIONER OF INCOME TAX-2 (1), INDORE vs. M/S EAGLE SEED & BIOTECH L., INDORE

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ITA 551/IND/2017Status: DisposedITAT Indore17 October 2018AY 2003-042 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the quantum addition, which formed the basis for the penalty, had been deleted by the ITAT, the penalty levied on that addition would not survive. Therefore, the order of the CIT(A) deleting the penalty was confirmed.

What were the facts?

The Revenue appealed against the deletion of a penalty of Rs. 45 lacs imposed under Section 271(1)(c). The penalty was levied on a quantum addition made on account of share application money treated as unexplained cash credits.

What were the issues?

The primary issue was whether a penalty under Section 271(1)(c) can survive when the underlying addition to income has been deleted.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI KUL BHARAT & SHRI MANISH BORAD

For Respondent: Shri P.K. Mitra, Sr. DR, Shri Ajay Tulsiyan, CA
Hearing: 15.10.2018Pronounced: 17.10.2018

1 Eagle Seeds - Penalty ITA No.551 of 2017

IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE

BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER And SHRI MANISH BORAD, ACCOUNTANT MEMBER

ITA No. 551/Ind/2017 A.Y. 2003-04

DCIT-2(1), Indore :: Appellant

Vs

M/s. Eagle Seeds & Biotech Ltd., Indore PAN – AAACE 8528 L :: Respondent

Department by Shri P.K. Mitra, Sr. DR Assessees by Shri Ajay Tulsiyan, CA Date of hearing 15.10.2018 Date of pronouncement 17.10.2018

O R D E R Per Shri Kul Bharat, JM This appeal is filed by the Revenue against the order of ld. CIT(A)-

I, Indore dated 17.5.2017 challenging the deletion of penalty at Rs. 45

lacs imposed by the Assessing Officer u/s 271(1)(c) of the I.T. Act.

2.

At the outset of the hearing, ld. counsel for the assessee

contended that quantum addition on the basis of which penalty was

levied by the Assessing Officer has been deleted by the ITAT, Indore,

therefore, penalty will not survive in the present appeal. Ld. Sr.DR

2 Eagle Seeds - Penalty ITA No.551 of 2017

conceded the fact that the quantum addition has been deleted by the

ITAT, Indore.

3.

We have heard both the parties and perused the orders of lower

authorities. We find that the quantum addition being share application

money received by the assessee from the Lunkad group of companies

was made to the total income treated as unexplained cash credits u/s 68

of the I.T. Act and in ITA No.285/Ind/2012 vide order dated 01.8.2016,

the above quantum addition has been deleted by ITAT, Indore. Thus,

when the addition which formed the basis for levy of penalty u/s

271(1)(c) of the I.T. Act has been deleted, the penalty levied on the

same does not survive and therefore, we confirm the order of the ld.

CIT(A).

4.

In result, appeal filed by the Revenue is dismissed.

Order was pronounced in the open court on 17.10.2018.

Sd/- Sd/- ( MANISH BORAD) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated : 17.10.2018 !v..s! Copy to: Appellant/Respondent/CIT(A)/Pr.CIT/DR, Indore

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