DEPUTY COMMISSIONER OF INCOME TAX, MUMBAI vs. SINDOOR VINEET MITTAL, MUMBAI

These appeals have been preferred by the Revenue against the order even dated 01-05-2024 impugned herein, passed by the Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2015-16.

The Assessee, being aggrieved, challenged the aforesaid addition by filing first quantum appeal before the then Ld. CIT(A) who vide order dated 29.11.2021 has confirmed the aforesaid addition. Thereafter vide order dated 27.03.2023 a penalty order u/s 271(1)(c) of the Act was passed, whereby the penalty of Rs.2,87,25,000/- @ 100% of the tax sought to be evaded on the income of Rs.7,14,99,827/- has been made. On appeal, Ld. Commissioner deleted the penalty.

During the hearing, the Assessee has drawn our attention to the Tribunal’s order dated 17.11.2023, whereby the co-ordinate Bench of the Tribunal allowed the appeal of the Assessee and consequently deleted the addition of Rs.7,14,99,827/- in total {additions of Rs.6,94,17,308/-, Rs.20,82,519/- respectively made u/s 68 & 69C of the Act}. As the foundation of the imposing the penalty has already been collapsed by virtue of Tribunal’s order dated 17.11.2023 referred to above, hence the penalty under consideration could not survive and therefore the same has rightly been deleted by the Ld. Commissioner by passing impugned order. Thus, the appeal under consideration is liable to be dismissed.

The Ld. DR did not refute the aforesaid facts and claim of the Assessee.

Considering the peculiar facts and circumstances referred to above in totality, the appeal under consideration i.e. filed by the Revenue Department is dismissed.

In view of our decision in both the appeals under consideration stands dismissed.