MOHAMMED SHAMIM BADGUJAR,MUMBAI vs. ASST CIT 19(2), MUMBAI

This appeal has been filed by the assessee against order dated 11/02/2015 passed by the Ld. CIT (A)- 34, Mumbai confirming the penalty of Rs. 3,00,000/- levied by the Assessing Officer u/s 271 (1) (c) of the Act for A.Y. 1990-91.

We have heard the rival submissions and perused the record. The AO has levied the penalty on the following additions: a) Addition made u/s 68 of the Act Rs. 2,40,000/-. b) Addition made u/s 69 of the Act Rs. 2,50,000/-. Total Rs. 4,90,000/- 2 Assessment Year: 1990-91 Since, the Ld. CIT(A) confirmed the penalty the assessee has filed the present appeal before the Tribunal.

At the time of hearing, the Ld. AR submitted that the assessee has challenged both the additions in the quantum of appeal before the ITAT. He further submitted that since the Tribunal has deleted both the additions vide its order dated 21/08/2015 passed in the impugned penalty is liable to be deleted.

The Ld. DR did not controvert the facts presented by Ld. AR. We have also gone through the order dated 21/08/2015 passed by the Tribunal in the quantum appeal. We notice that the addition of Rs. 2,40,000/- made u/s 68 of the Act has been deleted by the Tribunal, vide paragraph 9 of its order. Similarly, the addition of Rs. 2,50,000/- made u/s 69 of the Act has been deleted by the Tribunal vide paragraph 13 of the order. Since both the additions have been deleted, the impugned penalty is liable to be deleted. Consequently, we set aside the impugned order passed by the Ld. CIT (A) and direct the AO to delete the penalty.