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Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI
Before: SHRI LALIET KUMAR & SHRI S. RIFAUR RAHMAN
Appellant by : Sh. Hoshang B. Irani, Sr. DR Respondent by : Dr. C.P. Ramaswami Date of hearing : 07/12/2021 Date of pronouncement : 08/12/2021 ORDER PER LALIET KUMAR, J.M: The present appeal filed by the Revenue challenging the order passed by the Commissioner of Income Tax (Appeals)-24, Mumbai [hereinafter referred to as ‘the CIT(A)’] vide order dated 08.01.2019 on the grounds mentioned in the appeal. 1. “On the facts and in the circumstances of the case and in law, the Ld. CIT(A), erred in deleting the penalty of Rs.1,62,21,034/- levied u/s.271(1)(c) of the Act, without going into the merit of the penalty and ignoring that in the assessment order, it is clearly specified that, penalty proceedings u/s.271(1)(c) of the 2 Mum 2019-M/s Galaxy Surfactants Ltd. Income Tax Act is separately initiated for furnishing inaccurate particulars of income and assessee had deliberately filed inaccurate particulars of income which would have escaped the tax, and therefore, explanation 1 to section 271(1)(c) was applicable to the facts of the case.” 2. “The appellant prays that the order of the CIT(A), Mumbai on the above ground be set-aside and that of the assessing officer be restored.”
The ld. Authorized Representative (AR) for the assessee had drawn our attention to the order passed by the Tribunal dated 11.02.2017 in ITA No. 1986/Mum/2015 whereby the Tribunal had deleted the quantum addition made by the Assessing Officer (AO). He had also drawn our attention to para- 2.4.1 of the CIT(A) whereby the above noted fact was recorded by the CIT(A) and after recording that the appeal of the assessee was allowed.
Per contra, the ld. Departmental Representative (DR) for the Revenue relied upon the order passed by the AO.
We have heard the rival contentions of the parties and perused the material available on record.
Since the Tribunal vide order dated 19.12.2017 had deleted the quantum addition, therefore, nothing remains , as the very basis of imposition of penalty has been deleted. In views of above the penalty order cannot be sustained.
In view of the above, we delete the penalty and dismissed the appeal filed by the Revenue. Order pronounced in the court on 08.12.2021. Sd/- Sd/- (S. RIFAUR RAHMAN) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER मुंबई/Mumbai, Dt. 08/12/2021 SK, PS