ACIT, CIRCLE-16(1), MUMBAI vs. M/S SITI CABLE NETWORK LTD. [NOW MERGED WITH DISH TV INDIA LTD], MUMBAI

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ITA 1968/MUM/2019Status: DisposedITAT Mumbai28 December 2020AY 2004-053 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the additions/disallowances forming the basis of the penalty were deleted by a co-ordinate bench in the quantum appeal, the penalty proceedings had no foundation. Therefore, the Revenue's appeal was dismissed.

What were the facts?

The Revenue appealed against the deletion of a penalty levied under Section 271(1)(c) by the CIT(A). The penalty was based on additions/disallowances related to loan and advances written off and bandwidth charges.

What were the issues?

Whether penalty under Section 271(1)(c) can survive when the underlying additions/disallowances have been deleted in the quantum appeal.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI

Before: SHRI RAJESH KUMAR & SHRI RAM LAL NEGI

For Appellant: Shri T.S. Khalsa, A.R
For Respondent: Shri J.S. Bhansali, D.R
Hearing: 23.11.2020Pronounced: 28.12.2020

Per Rajesh Kumar, Accountant Member:

1.

The present appeal has been preferred by the Revenue against the order dated 29.01.2019 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2004-05.

2.

The only issue raised in the appeal is against the deletion of penalty of Rs.2,63,05,067/- by Ld. CIT(A) as levied by the AO under section 271(1)(c) of the Act on the additions/disallowance made on account of loan and advances written off and band width charges.

2 M/s. Siti Cable Network Ltd. (Now merged with Dish TV India Ltd.) 3. At the outset, the Ld. Counsel of the assessee pointed out that the additions/disallowances on which this penalty was levied by the AO has been deleted by the Tribunal in quantum appeal in ITA No.6961/M/2014 vide order dated 26.09.2018. The Ld. A.R., therefore, submitted that the appeal of the Revenue may kindly be dismissed as the very basis of the penalty stands demolished and deleted.

4.

The Ld. D.R., on the other hand, fairly agreed to the submissions made by the Ld. A.R.

5.

Having heard the rival parties and perusing the material on record, especially the order of the co-ordinate bench of the Tribunal in order dated 26.09.2018 in assessee’s own case, we find that the quantum has been deleted and therefore the penalty proceedings have no legs to stand. Accordingly, we are dismissing the appeal of the Revenue.

6.

In the result, the appeal of the Revenue is dismissed.

Order pronounced in the open court on 28.12.2020.

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