ACIT CENTRAL CIRCLE 3(1), CHENNAI vs. KAIVALLYA ENTERTAINMENT (P) LTD., CHENNAI

The Revenue filed this appeal against the order of the Commissioner of Income Tax (Appeals)-7, Chennai in (T-14)/CIT(A)-7/2016-17 dated 27.03.2019, who allowed the assessee’s appeal against the order passed U/s.271(1)(c) for the assessment year 2008-09.

The Ld.DR submitted that the Hon’ble ITAT allowed the quantum appeal of the assessee in for the assessment year 2008-09 dated 27.07.2017. Consequent to passing the assessment order, the Assessing Officer levied penalty U/s.271(1)(c) in C.No.CC 3(1)/AADCK0637K/2015-16 dated 24.03.2016 at Rs.67,21,946/- against which the assessee filed an appeal before the CIT(A). The Ld.CIT(A) found that the Hon’ble Tribunal has passed the quantum appeal vide its order dated 27.07.2017, therefore the penalty imposed U/s.271(1)(c) has no legs to stand on and allowed the appeal. Since, the Revenue has filed an appeal against the order of ITAT before the Hon’ble High Court, the Ld.DR pleaded that the appeal may be decided on merit. Per contra, the Ld.AR supported the order of the Ld.CIT(A).

We have heard the rival submissions. Since the Tribunal has allowed the quantum appeal, supra, as held by the Ld.CIT(A), the penalty imposed U/s.271(1)(c) has no legs to stand. Therefore, the Revenue’s appeal is dismissed.

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