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Income Tax Appellate Tribunal, “D” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEYAND SHRI RAJESH KUMAR
Date of Hearing – 06.01.2020 Date of Order – 15.01.2020
O R D E R PER SAKTIJIT DEY. J.M.
The captioned appeal has been filed by the assessee challenging the order dated 28th May 2018, passed by the learned Commissioner of Income Tax (Appeals)–32, Mumbai, pertaining to the assessment year 2005–06.
We have heard the parties. The leaned Counsel for the assessee submitted that penalty under section 271(1)(c) of the Act was imposed
2 Shri Mohd. Raza Akbarali Ghugaria on the basis of addition made towards long term capital gain computed by applying the provisions of section 50C of the Act. He submitted, while deciding assessee’s appeal arising out of quantum proceedings, the Tribunal in ITA no.8111/Mum./2011, dated 1st July 2016, has deleted the addition made by the Assessing Officer and accepted the assessee’s computation of long term capital gain at nil. Thus, he submitted, since the addition has been deleted, the penalty imposed under section 271(1)(c) of the Act cannot survive.
The learned Departmental Representative fairly accepted the aforesaid factual position.
Having considered rival submissions, we are of the view that the penalty imposed under section 271(1)(c) of the Act is no more sustainable in view of the fact that the addition on the basis of which the penalty has been imposed stands deleted by the Tribunal while deciding assessee’s appeal as referred to above. Accordingly, we delete the penalty imposed of ` 3,56,790, under section 271(1)(c).
In the result, appeal stands allowed. Order pronounced in the open Court on 15.01.2020