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

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’).

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.