DDIT (IT) 2(3)(2), MUMBAI vs. GURGAON INVESTMENTS LTD, MUMBAI

O R D E R Per Shamim Yahya, A. M.:

This appeal by the revenue is directed against the order of the learned Commissioner of Income Tax (Appeals)-56, Mumbai (‘ld.CIT(A) for short) dated 08.03.2019 and pertains to the assessment year (A.Y.) 2011-12.

1. Whether on the facts and on circumstances of the case and in law , the Ld. CIT(A) has erred in cancelling the penalty, levied u/s 271(1)(c) of the I.T. Act by observing that there is no case of furnishing of inaccurate particulars of income, without appreciating the fact that the assessee clearly furnished inaccurate particulars of income by not charging interest to be charged on the funds given as CCDs to its overseas Associated Enterprises even when as per provisions of law it was mandatory to charge it." 2. "Whether on the facts and on circumstances of the case and in law, the Ld. CIT(A) has erred in cancelling the penalty, levied u/s 271(1)(c) of the I.T. Act by observing that the assessee has furnished the relevant detail in 3CEB report, without appreciating the fact that merely providing detail of the transactions made with the Associate entity in 3CEB report is not suffice to prove that it had disclosed full and correct particulars of its income."

2 2995/Mum/2019 3. At the outset in this case, Ld. Counsel of the assessee submitted that the quantum appeal in this case in vide order dated 15/11/2019, the ITAT has deleted the addition. Hence, be pleaded that in this view of this matter, the penalty appeal before the ITAT with reference to above addition does not survive. The Ld. DR could not controvert that ITAT has deleted the addition.

Order pronounced in the open court on 19.5.2021.