DCIT 12(2)(1), MUMBAI vs FIRST FLIGHT COURIERS P.LTD, MUMBAI

Income Tax Appellate Tribunal, G Bench, Mumbai

Before: Shri C.N. Prasad & Shri A.L. Saini

For Appellant: Shri Abhijeet Patankar

For Respondent: Shri Rajesh Agrawal

Hearing: 20.02.2018Pronounced: 20.02.2018

This appeal has been filed by the Revenue against the order of the CIT(A)-9, Mumbai dated 10.06.2016 for A.Y. 2010-11 in deleting the penalty levied under Section 271(1)(c) of the Income Tax Act, 1961 (hereinafter “the Act”).

At the outset the learned counsel for the assessee submitted that the addition/disallowance made in respect of expenditure claimed on account of compensation payable by the assessee has been deleted by the Coordinate Bench in vide order dated 10.08.2016. Thus the learned counsel submitted that since the addition/disallowance made in the quantum proceedings is deleted by the Tribunal the penalty under Section 271(1)(c) cannot stand. A copy of the order of the Coordinate Bench is placed on record.

M/s. First Flight Couriers P. Ltd. 3. We have perused the order of the Coordinate Bench in dated 10.08.2016 and find that the addition/ disallowance made on account of expenditure claimed towards compensation on damage and loss has been deleted by the Tribunal. In the circumstances the penalty levied under Section 271(1)(c) has no legs to stand as the very basis for initiation of penalty has been deleted by the Tribunal.

In the result, the appeal filed by the Revenue is dismissed.

DCIT 12(2)(1), MUMBAI vs. FIRST FLIGHT COURIERS P.LTD, MUMBAI