DY CIT - 26(1), MUMBAI vs. M/S. LAXMI INDUSTRIAL ESTATE, MUMBAI

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ITA 471/MUM/2021Status: DisposedITAT Mumbai26 November 2021AY 2013-143 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that if the quantum addition, which formed the basis for the penalty, has been deleted, then the concealment penalty under Section 271(1)(c) would not survive. The order of the CIT(A) deleting the penalty was upheld.

What were the facts?

The appeals by the Revenue concerned the imposition of penalty under Section 271(1)(c) for assessment years 2013-14 and 2012-13. The penalty was levied consequent to certain additions made to the assessee's income.

What were the issues?

Whether a penalty under Section 271(1)(c) can survive when the underlying quantum addition has been deleted by the Tribunal.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A‘ BENCH

Before: SHRI M.BALAGANESH & SHRI AMARJIT SINGH&

For Appellant: Mr Mehul Jain, Sr AR
For Respondent: Shri. Reepal G Tralshawala, Mr Mehul Jain, Sr AR
Hearing: 24/11/2021Pronounced: 26/11/2021

आदेश / O R D E R PER M. BALAGANESH (A.M): These appeals in 472/Mum/2021 for A.Yrs.2013-14 & 2012-13 respectively arises out of the order by the ld. Commissioner of Income Tax (Appeals)-42, Mumbai in appeal No.CIT(A)- 42, Mumbai/10026/2019-20 & CIT(A)-42, Mumbai/10025/2019-20 respectively dated 20/01/2020 (ld. CIT(A) in short) in the matter of imposition of penalty u/s.271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as Act).

2.

The only issue to be decided in these appeals of the Revenue is that whether the concealment penalty u/s.271(1)(c) of the Act would survive when the quantum addition has been deleted by the Tribunal vide order dated 21/11/2019. We find that the ld. CIT(A) had taken due cognizance of the fact that the quantum addition has been deleted by this Tribunal and on that ground, he has held that no penalty would survive. In these circumstances, we do not deem it fit to narrate the entire facts of the case and basis for making addition which inturn consequentially had been subjected to levy for penalty u/s.271(1)(c) of the Act. Once, the quantum addition is deleted by this Tribunal which fact is also accepted by the Revenue, then, the levy of concealment penalty u/s.271(1)(c) of the Act would have no legs to stand. Hence, we do not find any infirmity in the order of the ld. CIT(A) deleting the penalty for both the years. Accordingly, the grounds raised by the Revenue are dismissed.

3.

In the result, both the appeals of the Revenue are dismissed. Order pronounced on 26/ 11 /2021 by way of proper mentioning in the notice board.

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