DCIT CC 3(2)CEN RG 3, MUMBAI vs. ABHITECH ENERGYCON LTD, MUMBAI

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ITA 3265/MUM/2016Status: DisposedITAT Mumbai27 October 2017AY 2008-093 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal confirmed the CIT(A)'s order deleting the penalty. Since the quantum addition was deleted by the Tribunal, the penalty levied on that addition would not survive.

What were the facts?

The Revenue appealed the deletion of penalty under Section 271(1)(c) by the CIT(A). The CIT(A) had deleted the penalty based on the ITAT's earlier decision to delete the quantum addition.

What were the issues?

Whether penalty under Section 271(1)(c) can survive when the underlying quantum addition has been deleted by the Tribunal.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 80IC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “E” BENCH, MUMBAI

For Respondent: DR Assessee by :

This appeal by the Revenue is arising out of the order of Commissioner of Income Tax (Appeals)-51, Mumbai, [in short CIT(A)] in appeal No. CIT(A)-51/IT-102/14-15, dated 22-02-2016. The Assessments were framed by the Asst. Commissioner of Income Tax, Central Circle-20, Mumbai (in short ACIT or AO) for the assessment year 2008-09 vide order dated 31-12-2010 under section 143(3) of the Income Tax Act, 1961(hereinafter ‘the Act’).

2.

The only issue in this appeal of Revenue is against the order of CIT(A) deleting the penalty levied by AO u/s 271(1)(c) of the Act. For this Revenue has raised following grounds: -

Abhitech Energycon Ltd. (AY: 12-13) “i. "On the facts and in the circumstances of the case and in law, the ld. CIT(A), Mumbai erred in deleting the penalty u/s 271(1)(c) of the Act." ii. "On the facts and in the circumstances of the case and in law, the Ld. CIT(A), Mumbai erred in deleting the penalty u/s 271(1)(c) of the IT Act on the basis that quantum addition has been deleted by the Hon’ble ITAT without appreciating the fact that the department has not accepted the Hon'ble ITAT's order till date and matter is pending.”

At the outset, the learned counsel for the assessee stated that the 3. Tribunal has deleted the quantum addition and allowed the deduction u/s 80IC of the Act in Income Tax Appeal No. 8721/Mum/2011 for the Assessment Year 20008-09 vide order dated 03-02-2016 and the CIT(A) has referred to the same and deleted the penalty. Since, the quantum is deleted by the Tribunal, the penalty will not survive. We find no infirmity in the order of CIT(A) deleing the penalty. Hence, we confirm the order of CIT(A).

In the result, the appeal of Revenue is dismissed. 4.

Order pronounced in the open court on 27-10-2017.

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