DCIT-9(3)(2), MUMBAI vs. GATE GOURMET INDIA P.LTD, MUMBAI

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ITA 6312/MUM/2017Status: DisposedITAT Mumbai24 April 2019AY 2009-103 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 upheld the CIT(A)'s decision to delete the penalty. This was because the primary additions on which the penalty was based were either deleted by a co-ordinate bench of the Tribunal or restored to the AO for fresh adjudication.

What were the facts?

The Revenue appealed against the deletion of penalty by the CIT(A) for the assessment year 2009-10. The penalty was levied based on two additions made by the AO.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the underlying additions have been deleted or restored to the file of the AO.

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 MAHAVIR SINGH & SHRI RAJESH KUMAR

For Appellant: Shri Aisager Rampurawala, A.R
For Respondent: Shri Chaudhary Arun Kumar Singh, D.R
Hearing: 15.04.2019Pronounced: 24.04.2019

Per Rajesh Kumar, Accountant Member:

1.

The present appeal has been preferred by the Revenue against the order dated 03.07.2017 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2009-10.

2.

The only issue raised by the Revenue is against the deletion of penalty by Ld. CIT(A) as levied by the AO under section 271(1)(c) of the Act.

3.

At the outset, the Ld. Counsel of the assessee brought to the notice of the Bench that the issue raised by the Revenue

2 M/s. Gate Gourment India Pvt. Ltd. against the deletion of penalty has no basis after the quantum addition has been decided in favour of the assessee and the Ld. CIT(A) only after following the order of the Tribunal in quantum appeal in which the first quantum of addition to the tune of Rs.2,02,89,000/- on account of one time capital assistance received by the assessee was deleted and second was addition of Rs.18,83,419/- in respect of amount written off was restored to the file of the AO, deleted the penalty. The ld AR ,therefore, prayed that the appeal of the Revenue may kindly be dismissed.

4.

The Ld. D.R., on the other hand, relied on the ground of appeal.

5. After hearing both the parties and perusing the material on record, we observe that the Ld. CIT(A) has rightly deleted the penalty on the ground that the quantum order in this case has been decided in favour of the assessee. We observe that the penalty has been imposed on two additions made by the AO one is of Rs.2,02,89,000/- in respect of onetime capital assistance received by the assessee which has been deleted by the co- ordinate bench of the Tribunal in A.Y. 2009-10 vide order dated 06.04.2016 and the second addition in respect of amount written off to the tune of Rs.18,83,419/- which has been restored to the file of the AO for fresh adjudication. In our opinion, the penalty has rightly been deleted by the Ld. CIT(A) when the additions in quantum appeal has either been decided in favour of the assessee or restored to the file of the AO. Accordingly, we dismiss the appeal of the Revenue as without any merit.

Order pronounced in the open court on 24.04.2019.

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