DEPUTY COMMISSIONER OF INCOME TAX , MADURAI vs. RAMCO CEMENTS LIMITED , RAJAPALAYAM
आयकर अपीलीय अिधकरण‘बी’ ायपीठ, चेई।
IN THE INCOME TAX APPELLATE TRIBUNAL
‘B’ BENCH: CHENNAI
माननीयीमनुकुमार िग र, ाियकसद! एवं
माननीय एस. आर. रघुनाथा, लेखा सद! के सम)
BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI HON’BLE S.R. RAGHUNATHA, ACCOUNTANT MEMBER
आयकर अपील सं./ ITA No.748/Chny/2025
िनधा:रण वष: /Assessment Year: 2016-17
Rajapalaym – 626 117. [PAN: AABCM 8375L]
(अपीलाथ/Appellant)
( यथ/Respondent)
अपीलाथG की ओर से/Assessee by :
Shri S.Muralidhar, FCA &
Shri J. Prabhakar, FCA
IJथG की ओर से /Revenue by :
Shri M.K. Biju, CIT-DR (virtual)
सुनवाई की तारीख/Date of Hearing
:
04.06.2025
घोषणा की तारीख /Date of Pronouncement
:
10.06.2025
आदेश / O R D E R
PER MANU KUMAR GIRI (Judicial Member): This appeal filed by the Revenue is directed against the order of the Ld. Commissioner of Income Tax (Appeals) NFAC, Delhi [CIT(A)] dated 21.01.2025 for Assessment Year 2016-17. 2. Brief facts of the case are that the AO vide impugned penalty order for AY 2016-17 imposed a penalty amounting to Ramco Cement Ltd.
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Rs.11,60,04,363/- on the furnishing of inaccurate particulars of income. In quantum proceedings, the claim of railway siding expenditure of Rs.33,51,95,223/- were disallowed in the assessment order.
Aggrieved, assessee filed appeal before the Ld. CIT(A) challenging the imposition of penalty. The Ld. CIT(A) has deleted the penalty imposed by the AO, noting the result of the quantum proceedings, where the co-ordinate Bench of the Tribunal in IT(TP)A No.46/CHNY/2021 (AY 2016-17) has deleted disallowance relating to the claim of railway siding expenditure of Rs.33,51,95,223/- and allowed the appeal of the assessee. Aggrieved, revenue is in further appeal before us.
Before us, the Ld. DR, Mr. M.K.Biju, CIT has contended that against the Tribunal order in the quantum proceedings, the Revenue has filed appeal before the Hon’ble High Court hence the proceedings has not been reached finality.
Per contra, the Ld. counsel submitted that the Co-ordinate Bench of the Tribunal in IT(TP)A No.46/CHNY/2021 (AY 2016-17) has Ramco Cement Ltd.
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deleted disallowance relating to the claim of railway siding expenditure of Rs.33,51,95,223/- and allowed the appeal of the assessee. He further contended that there is no stay by the Hon’ble High Court against the order of Tribunal passed in quantum proceedings.
We have heard the both parties. In the aforesaid facts and circumstances of the case, we are of the considered view that the Ld. CIT(A) has rightly deleted the penalty. It is judicially settled view that when the disallowance has been deleted by the Tribunal in quantum proceeding, the penalty does not survive.
In the result, the appeal filed by the Revenue is dismissed. Order pronounced on 10th day of June, 2025 at Chennai. (एस. आर. रघुनाथा) (S.R. Raghunatha) लेखा लेखा लेखा लेखा सदय सदय सदय सदय /Accountant Member (मनु कुमार िग र) (Manu Kumar Giri) ाियक सद! / Judicial Member चेनई/Chennai, दनांक/Dated: 10th June, 2025. EDN/- आदेश क ितिल प अ े षत/Copy to: 1. अपीलाथ/Appellant 2. थ/Respondent 3. आयकर आयु/CIT, Chennai 4. िवभागीय ितिनिध/DR 5. गाड फाईल/GF