DCIT(IT)-3(3)(2), MUMBAI vs. VENU RAMAN KUMAR , MUMBAI

This appeal by the Revenue is directed against the order of Commissioner of Income Tax Appeals-57, Mumbai [in short ‘CIT(A)’] dated 11/03/2019 for the assessment year 2006-07.

We have heard the submissions made by ld. Departmental Representative and have perused the documents on record. The Assessing Officer vide assessment order dated 31/03/2015 passed under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 ( in short ‘the Act’), made addition on account of undisclosed income and also initiated penalty proceedings under section 271(1)(c) of the Act . Thereafter, the Assessing Officer vide order dated 30/09/2015 levied penalty @300% of the tax sought to be evaded. The assessee filed appeal against the penalty order. The CIT(A) deleted the penalty as in the quantum proceedings, the entire quantum addition was deleted by the First Appellate Authority. The Revenue filed appeal in before the Tribunal assailing the order of CIT(A) in deleting the addition in quantum proceedings. The Tribunal vide order dated 19/06/2019 dismissed the appeal of Revenue. Once substratum for levy of penalty has eroded, the penalty proceedings does not survive. We concur with the findings of CIT(A) and uphold the same. The appeal of the Revenue is without any merit, hence, the same is dismissed.

In the result appeal by the Revenue is dismissed.