DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 8,, PUNE vs. EATON FLUID POWER LIMITED,, PUNE

This Revenue’s appeal for Assessment Year 2012-13 is directed against the Commissioner of Income Tax(Appeals)-6, Pune’s order dated 03.03.2020 passed in appeal no.PN/CIT(A)- 6/DCIT, Circle-8, Pune/10099/2017-18 in proceedings u/s.271(1)(c) of the Income Tax Act, 1961 [in short “the Act”].

Delay of 329 days in filing of the instant appeal instituted on 30.03.2021 at the Revenue’s behest is condoned since falling in Covid-19 pandemic outbreak period.

Coming to merits of the Revenue’s sole substantive grievance raised herein that the CIT(A) has erred in law and on facts in A.Y. 2012-13 (R) M/s. Eaton Fluid Power Ltd., reversing the Assessing Officer’s action levying section 271(1)(c) penalty of Rs.2,39,77,900/-, we note at the outset that the same pertains to quantum addition of arms length price adjustment involving a sum of Rs.7,39,03,220/- in the nature of “corporate service charges” compounding quantum. The Revenue is very much fair in its first and foremost ground itself that this tribunal’s co- ordinate bench’s order in dated 19.02.2020 has deleted the same in assessee’s appeal. Meaning thereby that the impugned penalty has no legs to stand as on date in light of this clinching factual position.

Faced with this situation, we conclude that the CIT(A) has rightly deleted the impugned penalty in light of the foregoing quantum developments. The Revenue’s instant sole substantive ground stands rejected therefore.

This Revenue’s appeal is dismissed.