DCIT, CIRCLE-7(2)(2),, MUMBAI vs. M/S. MULLEN LINTAS PVT. LTD.,, MUMBAI

The only issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in deleting the penalty levied in the sum of Rs.1,19,65,748/- u/s.271(1)(c) of the Act in the facts and circumstances of the case.

We have heard rival submissions and perused the materials available on record. We find that assessee was originally known as M/s.SSC & B Lintas P. Ltd. and the name was subsequently changed to M/s. Pickle Advertising P. Ltd., The assessee once again changed its name to M/s. Linen Advertising and Communications Pvt. Ltd., Subsequently, the assessee had again changed its name to M/s. Mullen Lintas P. Ltd. The return of income for the A.Y.2005-06 was filed by the assessee on 28/10/2005 declaring total loss of Rs.4,63,89,950/- and assessment was completed u/s.143(3) of the Act on 27/12/2007 determining total income at Rs.17,29,050/-, wherein an addition in respect of undisclosed commission income was made to the extent of Rs.3.27 Crores. We find that the ld. AO had also levied penalty in the sum of Rs.1,19,65,748/- u/s.271(1)(c) of the Act in respect of this addition. We find that the quantum addition of Rs.3.27 Crores had been deleted by this Tribunal in dated 21/06/2017 which was followed by the ld. CIT(A) while deleting the penalty in the instant case. Since the quantum addition has been deleted, the penalty levied on such addition would have no legs to stand. Hence, we do not find any infirmity in the order of ld. CIT(A) deleting the penalty. Accordingly, the ground raised by the revenue is dismissed.

In the result, appeal of the revenue is dismissed.