DY CIT CIRCLE- 2 (3)(2), MUMBAI vs. M/S SOLARFIELD ENERGY PVT LTD., MUMBAI

PER SAKTIJIT DEY, JM This is an appeal by the revenue against the order dated 23.09.2019 of learned Commissioner of Income Tax (Appeals)–6, Mumbai deleting the penalty imposed under section 271(1)(c) of the Income Tax Act, 1961 for the assessment year 2012-13. 2. We have heard Shri Vijay Kumar Menon, the learned Departmental Representative and Shri Nitesh Joshi, learned Counsel for the assessee. On perusal of the impugned order of learned Commissioner (Appeals), we find that the reason for which learned Commissioner (Appeals) has deleted the penalty imposed under section 271(1)(c) of the Act is, the addition based on which such penalty was imposed, in the meanwhile, has been deleted by the Tribunal. On perusal of record, we find, certain additions made in the assessment order passed for the impugned assessment year culminated in imposition of penalty under section 271(1)(c) of the Act. However, while deciding assessee’s appeal Assessment Year: 2012-13 challenging such additions, the Tribunal in ITA No. 5189 & 5190/Mum/2016 dated 16.07.2019 has deleted the additions. Thus, the uncontroverted factual position emerging from record clearly demonstrates that the additions based on which the Assessing Officer (AO) has imposed penalty under section 271(1)(c) of the Act is no longer in existence as on date by virtue of the order passed by the Tribunal referred to above. That being the case, penalty imposed under section 271(1)(c) of the Act based on such non-existent addition cannot survive. Therefore, we do not find any infirmity in the decision of learned Commissioner (Appeals) in deleting the penalty imposed under section 271(1)(c) of the Act. Grounds are dismissed.

आदेशानुसार/ BY ORDER, सत्य दपि प्रदि //// उि/सहायक िंजीकार (Dy./Asstt.