LATE SHRI GOKULDAS H PARIKH,MUMBAI vs. ITO 21(1)(4), MUMBAI

The captioned appeal by assessee for Assessment Year [AY] 2009-10 contest the order of the Ld. Commissioner of Income-Tax (Appeals)-39 [CIT(A)], Mumbai, Appeal No. CIT(A)-39/ITO-21(1)(4)/IT- 19/13-14 dated 23/02/2015 qua confirmation of penalty u/s 271(1)(C) for ITA.No.2466/Mum/2015 Late Sh. Gokuldas H.Parikh Assessment Year-2009-2010 Rs.1,95,57,614. The quantum assessment for impugned AY was framed by Ld. Income Tax Officer 21(1)(4), Mumbai u/s 144 read with Section 147 of the Income Tax Act,1961 on 06/12/2010 whereas penalty u/s 271(1)(C) was levied vide order dated 25/09/2012. The penalty has been levied against addition on account of certain undisclosed ‘Capital Gains’ earned by the assessee for Rs.8,65,33,977/-.

The Ld. Authorised Representative for the assessee [AR], at the outset, drew our attention to the order of Tribunal against quantum additions vide & ITA No. 7197/M/2013 dated 24/11/2017 and pointed out that quantum additions has been restored to the file of Ld. AO for re-adjudication and therefore, the impugned penalty do not survive. The Ld. Departmental Representative [DR] fairly conceded the same. 3. Upon perusal of the cited order of the Tribunal, we agree with the aforesaid contention of the Ld. AR and find that quantum addition against which penalty has been levied has been set aside to the file of Ld. AO for re-adjudication and therefore, the impugned penalty does not survive. Therefore, by deleting the same, we allow assessee’s appeal. Needless to say that the revenue is free to re-initiate the same on the basis of outcome of quantum additions in set aside proceedings. 4. Resultantly, the assessee’s appeal stands allowed. Order pronounced in the open court on 24th January, 2018.