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Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI
Before: SHRI MAHAVIR SINGH & SHRI RAJESH KUMAR
Per Rajesh Kumar, Accountant Member:
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.
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.
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.
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.