K AMSHET INVESTMENT P. LTD,MUMBAI vs. ITO 6(2)(4), MUMBAI

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ITA 3297/MUM/2016Status: DisposedITAT Mumbai07 March 2018AY 2008-092 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the addition made in the quantum appeal, which formed the basis for the penalty, had been deleted by a co-ordinate bench. Therefore, the penalty could not survive.

What were the facts?

The assessee appealed against a penalty levied under Section 271(1)(c) for the assessment year 2008-09. The penalty was based on an addition made in the quantum appeal.

What were the issues?

Whether a penalty under Section 271(1)(c) can be sustained when the underlying addition on which it was based has been deleted.

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 BENCHES “H”, MUMBAI

Before: Shri C Nagendra Prasad & Rajesh Kumar

For Appellant: Shri Hiro Rai
For Respondent: Shri M C Omi Ningshen (DR)
Hearing: 01.03.2018Pronounced: 07.03.2018

O R D E R Per C Nagendra Prasad, Judicial Member

This appeal has been filed by the assessee against the order of the learned CIT(A)-12, Mumbai, dated 23.02.2016, for A.Y. 2008-09 in sustaining penalty levied u/s. 271(1)(c) of the Act.

2.

At the outset, the learned counsel for the assessee submitted that the addition made in the quantum appeal has been deleted by the Tribunal, vide its order dated 24.01.2018, in ITA No.1248/Mum/2013. A copy of the said order of the co-ordinate Bench in the quantum proceedings is furnished before us. The learned counsel referring to para 7 of the said order submitted that the disallowance of interest payable to M/s. JSW Steel Ltd. has been deleted by the Tribunal. Therefore, he submitted that since the addition has been deleted, the penalty has no legs to stand.

3.

The learned DR fairly submitted that since the quantum addition has been deleted the penalty will not survive.

4.

On hearing both the parties and perusing the order of the Tribunal in the quantum proceedings, we find that the disallowance of interest payable to M/s. JSW Steel Ltd. has been deleted and since the penalty was levied on such disallowance, the same will not survive. In the circumstances, we direct the Assessing Officer to delete the penalty.

5.

In the result, the appeal filed by the assessee is allowed.

Order pronounced in the open court on 7th day of March, 2018.

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