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

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.

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.

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).

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