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Income Tax Appellate Tribunal, MUMBAI BENCHES “H”, MUMBAI
Before: Shri C Nagendra Prasad & Rajesh Kumar
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.
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.
The learned DR fairly submitted that since the quantum addition has been deleted the penalty will not survive.
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.
In the result, the appeal filed by the assessee is allowed.
Order pronounced in the open court on 7th day of March, 2018.