DCIT 8(2), MUMBAI vs. PANTALOON RETAIL (I) LTD, MUMBAI

Aforesaid appeal by revenue for Assessment Year [AY] 2007-08 contest the order of Ld. Commissioner of Income-Tax (Appeals)-17 [CIT(A)], Mumbai, Appeal No.CIT(A)-17/IT-73/2011-12 dated 29/08/2012 qua deletion of penalty u/s 271(1)(c) for Rs.841.50 Lacs as levied by Ld. AO vide order dated 03/08/2011. The aforesaid penalty has been levied Pentaloon Retail (India) Ltd. Assessment Year-2007-08 against quantum addition of Rs.25 Crores stated to be received by the assessee from an entity namely Future Media (I) Ltd. and claimed to be not taxable, being capital receipts in nature. The revenue, treating the same as revenue in nature, has added the same to the income of the assessee vide assessment u/s 143(3), order dated 30/12/2009. The Ld. CIT(A), finding the issue to be contentious and debatable, deleted the impugned additions, against which the revenue is in further appeal before us.

The Ld. Auhtorized Representative for the Assessee [AR], Ms. Dinkle Hariya, at the outset, drew attention to the fact that the assessee contested the quantum addition with success before this Tribunal vide dated 26/04/2017, a copy of which has been placed on record. The Ld. Departmental Representative [DR] controverted the same by submitting that that the same has not attained finality yet. 3. Upon due consideration, we find that the quantum additions against which the assessee has been saddled with impugned penalty have been deleted by the Tribunal. The revenue is unable to demonstrate, in any manner, that the ratio of the aforesaid decision has been stayed / reversed / over-ruled by any higher judicial authority. In view of the same, the impugned penalty does not survive and therefore, we see no reason to interfere with the order of Ld. first appellate authority, in this regard.